BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON EDUCATION
                              Senator Carol Liu, Chair
                                2015 - 2016  Regular 

          Bill No:             AB 735             
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          |Author:    |Ridley-Thomas                                        |
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          |Version:   |January 4, 2016                         Hearing      |
          |           |Date:    June 29, 2016                               |
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          |Urgency:   |No                     |Fiscal:    |Yes              |
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          |Consultant:|Lynn Lorber                                          |
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          Subject:  Postsecondary education:  Student Athlete Bill of  
          Rights


            SUMMARY
          
          This bill eliminates the January 1, 2021, sunset on the Student  
          Athlete Bill of Rights.

            BACKGROUND
          
          Existing law:

             1)   Prohibits any person from giving, offering, promising or  
               attempting to give money or other item of value to a  
               student athlete or member of the athlete's immediate family  
               to induce, encourage or reward a student athlete's  
               application, enrollment or attendance at a public or  
               private institution of higher education (IHE) to  
               participate in intercollegiate sporting activities.   
               (Education Code § 67360)

             2)   Requires California postsecondary educational  
               institutions that offer athletic scholarships to provide  
               specific information on its Web site, such as the costs of  
               attendance that are prohibited from inclusion in a full  
               grant-in-aid athletic scholarship, National Collegiate  
               Athletic Association policy on scholarship duration, the  
               most recent cost of attendance, the institution's policy on  
               athletically related medical expenses, and athletic release  







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               information.  (EC § 67365)

          Student Athlete Bill of Rights

             3)   Applies the following to an IHE that receives, as an  
               average, at least $10 million in annual income from media  
               rights for intercollegiate athletics.  (EC § 67452)

             4)   Requires an IHE, if an athletic program does not renew  
               an athletic scholarship of a student athlete who suffers an  
               incapacitating injury or illness resulting from  
               participating in the athletic program and is determined to  
               be medically ineligible, to provide an equivalent  
               scholarship as specified.  (EC § 67452)

             5)   Requires an athletic program to provide an equivalent  
               scholarship to a student athlete who was on an athletic  
               scholarship and is in good standing but has exhausted his  
               or her athletic eligibility, for up to one year.  (EC §  
               67452)

             6)   Requires each athletic program to be responsible for  
               paying the premiums of each of its student athletes whose  
               household has an income and asset level at or 
               below the level for Cal Grant A recipients for insurance  
               covering claims resulting from their participation in the  
               athletic program.  (EC § 67453)

             7)   Requires an athletic program to be responsible for  
               paying the insurance deductible for a claim of any student  
               athlete who suffers an injury resulting from participation  
               in the athletic program.  (EC § 67453)

             8)   Requires an athletic program, if a student suffers an  
               injury resulting from participation in the athletic program  
               that requires ongoing medical treatment, to provide for at  
               least two years following the student's graduation or  
               separation from the institution of higher education (IHE)  
               either the necessary medical treatment or health insurance  
               that covers the injury and resulting deductibles.  (EC §  
               67453)
            
          ANALYSIS
          








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          This bill eliminates the January 1, 2021 sunset on the Student  
          Athlete Bill of Rights, thereby extending these rights  
          indefinitely.  

          STAFF COMMENTS
          
          1)   Need for the bill.  According to the author, "The Student  
               Athlete Bill of Rights will become inoperative on January  
               1, 2021.  Any benefits provided pursuant to this act would  
               cease on that date in the middle of the academic year.   
               Thus, student athletes who enroll in school in 2017 and  
               later will lack the certainties of the protections of the  
               Student Athlete Bill of Rights being available to them  
               throughout their entire collegiate experience.  Because of  
               the success of the Student Athlete Bill of Rights, it is  
               unnecessary to wait any longer to repeal the sunset date  
               and to place undue stress on our student athletes and to  
               not extend common sense protections indefinitely."

          2)   Only affects four universities.  Based on annual revenues  
               from media rights, the Student Athlete Bill of Rights  
               currently only applies to four institutions of higher  
               education: the University of California at Berkeley and Los  
               Angeles, Stanford University, and the University of  
               Southern California.  None of these institutions have  
               expressed opposition to removing the sunset and making the  
               Student Athlete Bill of Rights permanent.

          3)   National Collegiate Athletic Association and Pac-12  
               Conference rules.  According to the National Collegiate  
               Athletic Association's (NCAA) Web site, "NCAA full  
               scholarships cover tuition and fees, room, board and  
               course-related books.  Most student-athletes who receive  
               athletic scholarships receive an amount covering a portion  
               of these costs.  Division I schools may provide  
               student-athletes with multiyear scholarships.   
               Additionally, Division I schools may pay for  
               student-athletes to finish their bachelor's or master's  
               degrees after they finish playing NCAA sports.  If a school  
               plans to reduce or not renew a student-athlete's aid, the  
               school must notify the student-athlete in writing by July 1  
               and provide an opportunity to appeal.  In most cases,  
               coaches decide who receives a scholarship, the scholarship  
               amount and whether it will be renewed."








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          "NCAA bylaws require that member institutions verify  
               student-athletes have insurance coverage for athletically  
               related injuries, with limits up to the deductible of the  
               National Collegiate Athletic Association (NCAA)  
               Catastrophic Injury Insurance Program (currently $90,000),  
               before they can practice or play.  Members are permitted to  
               provide that coverage, but they are not required to do so.   
               Coverage can be provided through the school, a  
               parent/guardian policy or a policy student-athletes have on  
               their own.  If coverage by some source is not in place, the  
               student-athlete cannot practice or play.  The NCAA provides  
               all student-athletes at all active member institutions  
               coverage under the catastrophic program. This program  
               provides $20 million in lifetime benefits to  
               student-athletes who become totally disabled while  
               practicing or playing.  These benefits include medical  
               expenses as well as disability benefits.  An injured  
               student-athlete is eligible to receive medical benefits  
               after the policy deductible (currently $90,000) is met."

          According to the Pac-12 Conference's Web site, rules adopted in  
          2014, which apply to all Pac-12 student-athletes across all  
          sports, include:

                  a)        Athletic scholarships are guaranteed for four  
                    years for student-athletes in all sports.





                  b)        Student-athletes who leave school before  
                    graduating can use the remainder of their educational  
                    expenses later to earn their degrees.

                  c)        Medical expenses for student-athletes who are  
                    injured during their college athletic careers are  
                    covered for up to four years after a student-athlete  
                    leaves the institution.

                  d)        Student-athletes who transfer between Pac-12  
                    institutions are able to receive athletic scholarships  
                    immediately.








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                  e)        Student-athletes are represented in the  
                    Conference governance structure.



          1)   Status.  There is no requirement for affected institutions  
               to provide progress reports, data or an evaluation relating  
               to implementation of the Student Athlete Bill of Rights.   
               The Student Athlete Bill of Rights has been in place for  
               three academic years, and is scheduled to sunset on January  
               1, 2021.  

          Should the Legislature have data relative to the implementation  
               of the Student Athlete Bill of Rights before extending its  
               provisions indefinitely?

          Should the sunset be repealed four years before the scheduled  
               inoperative date?

          2)   Fiscal impact.  According to the Assembly Appropriations  
               Committee, this bill has no state costs for the impacted  
               public institutions to continue compliance with the Student  
               Athlete Bill of Rights.  The Student Athlete Bill of Rights  
               requires institutions to rely exclusively on revenue from  
               media rights to cover the costs of compliance.


            SUPPORT
          
          None received.

            OPPOSITION
           
           None received.

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