BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 1525
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          SENATE THIRD READING
          SB 1525 (Padilla)
          As Amended  August 6, 2012
          Majority vote 

           SENATE VOTE  :22-14  
           
           ARTS, ENTERTAINMENT, SPORTS        5-1       HIGHER EDUCATION    
              6-2             
           
           ----------------------------------------------------------------- 
          |Ayes:|Campos, Butler, Carter,   |Ayes:|Block, Achadjian,         |
          |     |Gatto, Mendoza            |     |Brownley, Fong, Galgiani, |
          |     |                          |     |Lara                      |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Beth Gaines               |Nays:|Olsen, Miller             |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           APPROPRIATIONS      12-5                                        
           
           ----------------------------------------------------------------- 
          |Ayes:|Fuentes, Blumenfield,     |     |                          |
          |     |Bradford, Charles         |     |                          |
          |     |Calderon, Campos, Davis,  |     |                          |
          |     |Gatto, Hall, Hill, Lara,  |     |                          |
          |     |Mitchell, Solorio         |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Harkey, Donnelly,         |     |                          |
          |     |Nielsen, Norby, Wagner    |     |                          |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Enacts a Student Athlete Bill of Rights and places 
          specified requirements on collegiate athletic programs 
          commencing with the 2013-14 academic year and ending January 1, 
          2021.  Specifically,  this bill  :

          1)Applies all of the following requirements only to a higher 
            education institution receiving income of more than $10 
            million annually through media rights (contracts with 
            television networks), and requires the institution to rely 
            exclusively on this revenue to cover the costs of these 
            requirements.









                                                                  SB 1525
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          2)Requires the postsecondary education institution, if a student 
            athlete's athletic scholarship is not renewed due to 
            incapacitating injury or illness resulting from participation 
            in the athletic program, to provide an equivalent scholarship, 
            that when combined with the previous athletic scholarship, 
            provides the student with up to five academic years or until 
            the student completes his academic degree, whichever comes 
            first.  A student's temporary leave of absence shall not count 
            against the five-year limit.

          3)Requires an athletic program with a six-year graduation 
            success rate, disaggregated by team, of less than 60%, to 
            provide a student athlete in good standing who has exhausted 
            their athletic scholarship with an equivalent scholarship for 
            up to one year.

          4)Requires each athletic program to conduct a financial and life 
            skills workshop, as specified, for all first-year and 
            third-year student athletes.

          5)Requires an athletic program to respond within seven business 
            days to a student athlete's written request to transfer.

          6)Stipulates that an athletic program, unless the student 
            athlete declines, is responsible for paying the health 
            insurance premiums of a student athlete whose household income 
            does not exceed the level of Cal Grant A recipients, for 
            insurance covering claims resulting from the student's 
            participation in the athletic program.

          7)Stipulates that an athletic program is responsible for paying 
            the insurance deductible amount applicable to a student who 
            suffers injury resulting from participation in the athletic 
            program, and if the student requires ongoing medical 
            treatment, the program is to provide, for at least two years 
            after the student's graduation or separation from the 
            institution, either necessary medical treatment or health 
            insurance covering the injury and resulting deductibles.

          8)Requires the athletic program to adopt and implement 
            guidelines to prevent, assess and treat sports-related 
            concussions and dehydration.

           FISCAL EFFECT  :  According to the Assembly Appropriations 








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          Committee: 

          1)Based on their annual revenue from media rights, this bill 
            will initially only apply to four schools-the University of 
            California's (UC's) Berkeley and Los Angeles campuses, 
            Stanford University, and the University of Southern California 
            (USC). There will be no additional costs to UC, as the 
            university indicates this bill's requirements are consistent 
            with current policies and practices.

          2)The California State University indicates that its San Diego 
            campus will meet the media revenue threshold for this bill in 
            the near future and estimates that annual costs for additional 
            scholarships could be up to $500,000, covered by non-state 
            sources.

          3)To the extent former student-athletes, upon losing an athletic 
            scholarship, receive extended scholarships paid for media 
            rights revenues, instead of being entitled to state and 
            institutional aid, there will be minor savings to these 
            programs.

           COMMENTS  :  According to the author, "The National Collegiate 
          Athletics Association (NCAA) regulations provide universities 
          with a significant amount of discretion in how they protect 
          student-athletes.  Universities choose not to renew a 
          scholarship annually from year to year at will.  Similarly, 
          university and NCAA medical insurance only kicks in after the 
          student-athlete's insurance is exhausted.  Lastly, there is 
          little governing the due process and transfer rights for 
          student-athletes, allowing universities to give student-athletes 
          fewer rights than the student general body."

          As noted previously, the provisions of this bill would apply 
          only to universities with annual media revenues of $10 million 
          or more-UC Berkeley, UCLA, USC, and Stanford.  These 
          universities enroll 2,500 of the state's 12,500 student athletes 
          enrolled in Division I- or Division II-eligible institutions.  
          They note that the scholarship, transfer, and insurance/medical 
          coverage provisions of this bill are consistent with their 
          existing practices.


           Analysis Prepared by  :    Sandra Fried / HIGHER ED. / (916) 








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          319-3960                                                    

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