BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1525
                                                                  Page  1

          Date of Hearing:   June 27, 2012


           ASSEMBLY COMMITTEE ON ARTS, ENTERTAINMENT, SPORTS, TOURISM, AND 
                                   INTERNET MEDIA
                                 Nora Campos, Chair

                    SB 1525 (Padilla) - As Amended:  May 29, 2012

                       AS PROPOSED TO BE AMENDED IN COMMITTEE
           
          SENATE VOTE  :   22-14
           
          SUBJECT  :   Student-Athlete Bill of Rights

           SUMMARY :   This bill enacts the Student Athlete Bill of Rights 
          (SABR), which would apply to intercollegiate athletic programs 
          at universities in the state that receive an average of $10 
          million or more in revenue derived from media rights for 
          intercollegiate athletics.  The SABR requires that qualifying 
          universities that do not renew the athletic scholarship of a 
          student who has suffered an injury resulting from his or her 
          participation or for a non-disciplinary reason, provide an 
          equivalent scholarship, as specified.  It requires that each 
          qualifying athletic program conduct a financial and life skills 
          workshop for first and third-year athletes, as specified.  The 
          SABR further requires that the university approve all student 
          athletes' transfer requests and must continue to pay specified 
          medical expenses for a student athlete who was injured.  This 
          bill provides that the institutions to which this bill applies 
          shall rely exclusively on income derived from media rights for 
          intercollegiate athletics to defray the costs of this bill. 
          Specifically,  this bill  :   

          1)Requires that if an athletic program does not renew an 
            athletic scholarship of a student athlete who suffers an 
            incapacitating injury or illness resulting from his or her 
            participation in the athletic program, as specified, the 
            institution of higher education shall provide an equivalent 
            scholarship for up to five academic years or until the student 
            athlete completes his or her undergraduate degree, whichever 
            period is shorter.

          2)Further provides that an athletic program shall provide an 
            equivalent scholarship to a student-athlete who was on an 








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            athletic scholarship and is in good standing, but has 
            exhausted his or her athletic eligibility, for up to one year 
            or until the student-athlete completes his or her primary 
            undergraduate degree, whichever is shorter. 

          3)Allows an exemption from the equivalent scholarship 
            requirement for non-injured student athletes if an athletic 
            program has a graduation success rate above 60 percent, as 
            specified.

          4)Requires that an institution of higher education grant a 
            student athlete the same rights as other students with regard 
            to possible adverse or disciplinary actions, including actions 
            involving athletically-related financial aid.

          5)Declares that an athletic program shall respond within seven 
            business days with an answer to a student athlete's written 
            request to transfer to another institution of higher 
            education.

          6)Requires that, unless a student athlete declines the payment 
            of premiums, an athletic program shall be responsible for 
            paying the medical insurance premiums of each of its 
            student-athletes whose household income would qualify them for 
            Cal Grant A, and covering claims resulting from their 
            participation in the athletic program. 

          7)Requires that an athletic program shall be responsible for 
            paying either the medical bills or the insurance - including 
            deductible - applicable to the claim of any student athlete 
            who suffers an injury resulting from his or her participation 
            in the athletic program for a minimum of 2 years from the 
            student-athlete's graduation or separation from the 
            institution of higher education.  Excludes pre-existing 
            conditions from this requirement.

          8)Requires an athletic program adopt and implement guidelines to 
            prevent, assess, and treat sports-related concussions and 
            dehydration.  It also requires a program to adopt and 
            implement exercise and supervision guidelines for any student 
            athlete identified with potentially life-threatening health 
            conditions.

          9)Excludes any institution of higher education that receives 
            less than $10 million in annual income derived from media 








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            rights for intercollegiate athletics, as specified, from its 
            provisions.

          10)Provides that 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 of compliance with its provisions.  

          11)Makes numerous legislative findings and declarations.

           EXISTING LAW  : 

          Requires California postsecondary educational institutions that 
          offer athletic scholarships to provide specific information on 
          its website, such as the National Collegiate Athletic 
          Association (NCAA) policy on scholarship duration, the most 
          recent cost of attendance, and their policy on athletically 
          related medical expenses. (Education Code Section 67365)

          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.  Some exceptions may be granted in 
            accordance with NCAA rules.  (Education Code Section 67360)

          2)Subjects a person who violates these rules to a civil penalty 
            of up to $10,000, or three times the amount given, offered or 
            promised, whichever is greater.  (Education Code Section 
            67360)

          3)Prohibits student athletes and members of their immediate 
            family from soliciting or accepting money or other item of 
            value as an inducement, encouragement or reward, subject to 
            the same exceptions and penalty listed above.  (Education Code 
            Section 67361)

          4)See comments below for relevant NCAA rules.
           FISCAL EFFECT  :   According to the Senate Appropriations 
          Committee analysis:  University of California (UC):  Potentially 
          significant cost pressure on the UCLA and UC Berkeley campus 
          budgets to backfill any reduction of support for activities that 
          currently receive financial support from media rights revenues. 








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          California State University (CSU):  The CSU does not believe 
          that any of its campuses currently meet the threshold for the 
          SABR to apply, but projects that San Diego State University 
          (SDSU) will in the near future.  The CSU estimates that it will 
          incur annual increased costs of $500,000 when the bill applies 
          SDSU.  Financial aid programs:  Potential state savings, to the 
          extent that former student-athletes are extended scholarships 
          paid for by media rights funds, instead of being entitled to, or 
          competing for, state and institutional aid upon losing an 
          athletic scholarship.  

           COMMENTS  :   

           1)Author's statement and support  : According to the author, "The 
            United States Department of Education reports, California's 
            twelve thousand student athletes in Division I and Division II 
            schools helped generate over $687 million dollars in income in 
            2010 alone.  However, the future for most student athletes is 
            far from certain.  Due to NCAA rules and a lack of state law, 
            universities often neglect to pay for the medical care of 
            injured student athletes.  Additionally, universities can 
            choose to not renew an injured student athlete's scholarship.  
            Saddling a student with medical bills and taking away 
            scholarships can easily push a student out of college. 

            "SB 1525 would provide student athletes have the financial 
            security and medical care needed to ensure their graduation 
            after fulfilling their commitment to their university.  This 
            bill would also ensure that student-athletes have the same 
            rights and procedural due process as their peers in the 
            general student body."

             The America Association of University Women  add in support, 
            "The intensive training schedule required for these student 
            athletes often requires over 40 hours per week, according to a 
            2011 NCAA survey.  Current regulations do not allow for the 
            financial compensation of student athletes, beyond the 
            financial aid that is ostensibly based solely on their 
            financial need.  Due to their classification as 'student 
            athletes', these students are not classified as workers 
            eligible for the same worker's compensation benefits that 
            their Teacher's Assistant or cafeteria cashier classmates are, 
            despite collegiate athletics generating billions of dollars 
            annually.  Current regulations also allow institutions of 
            higher education to rescind their financial aid for a myriad 








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            of reasons, including career-ending injuries received while 
            playing for their school.  Many student athletes are only able 
            to afford the high cost of tuition due to the scholarships 
            promised to them upon admission.  When their 'student athlete' 
            status is lost and their financial aid evaporates, these 
            former athletes are at a great risk of becoming former 
            students as well." 

           2)Opposition  :  Note: Opposition is unconfirmed to the proposed 
            version of the bill before the committee today in light of 
            amendments discussed in Comment 3, below.

              a)   The 4 Affected Universities are Concerned About 
               Competitive Disadvantage  :

               UC Berkeley, UCLA, Stanford and USC each wrote the 
               committee in opposition to the bill based upon their shared 
               concerns about its potential impacts upon their ability to 
               remain athletically competitive if SB 1525 were to become 
               law - given that they currently operate the only athletic 
               programs which the bill would apply to.  In addition, the 
               CSU system joins the opposition, based upon the 
               anticipation that CSU San Diego will soon cross the $10 
               million dollar media income threshold for their athletic 
               program. They raise three main points of opposition:

                Scholarship Renewal  :  This bill requires our four 
               institutions to provide equivalent scholarships to students 
               whose athletic aid was cancelled for non-disciplinary 
               reasons. These equivalent scholarships will continue to 
               count against a team's maximum scholarship limit under NCAA 
               rules.  As a result, our California institutions would be 
               at a competitive disadvantage with all other NCAA schools 
               in the nation and, more importantly, this bill would 
               preclude us from awarding the non-renewed athletic 
               scholarship to another deserving prospective 
               student-athlete or current student-athlete.

                Transfer Restrictions  :  The existing transfer policies, 
               which are recognized and adhered to nationally, are 
               designed to deter competing schools from recruiting another 
               institution's student-athletes.  This bill would prohibit 
               our four institutions from opposing the transfer of one of 
               its current student athletes to another institution, 
               including conference and/or traditional sports rivals.  The 








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               time, money and resources spent on recruiting 
               student-athletes as well as the student-athlete's knowledge 
               of an institution's plays, tactics and plans would not be 
               subject to protection.

                Equity and Fairness  :  This bill seeks to resolve issues for 
               student athletes that are not a problem at any of our four 
               institutions.  This bill unfairly targets only four schools 
               in California in an effort to penalize the most successful 
               athletic programs in the state.

              b)   State Controller's Office - Implementation Concerns and 
               Request for Amendment  :   
           
               According to the State Controller's Office analysis of SB 
               1525, "This bill requires the Controller to make a 
               determination about which IHEs do not meet the threshold 
               for participation in the proposed program.  Making this 
               determination requires information about the 
               intercollegiate media rights revenues of the state's IHEs 
               which is currently unavailable to the Controller.  Neither 
               existing law nor the bill as written requires the state's 
               IHEs to disclose this information to the Controller in any 
               manner.  This bill also does not provide the method, 
               formula, or schedule by which the Controller would make 
               this determination.  Carrying out the requirements of this 
               bill would be costly for the Controller while the work 
               could probably be performed more efficiently elsewhere or 
               through a different mechanism.

               These concerns are addressed by amendments to be taken in 
               committee which remove the Controller's duties from the 
               bill.

           3)Amendments to be Presented in Committee  :

              a)   Equivalent Scholarship Language  :  In response to 
               opposition concerns, the author has agreed to amend the 
               bill to rewrite the "equivalent scholarship language" to 
               exclude student-athletes who have remaining eligibility, 
               thereby allowing institutions of higher education to 
               maintain their full complement of athletic scholarships 
               under NCAA rules.

               "An athletic program shall provide an equivalent 








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               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 or until 
               the student-athlete completes his or her primary 
               undergraduate degree, whichever is shorter."

               The amendments also clarify the exception for academically 
               successful programs from this provision, to provide, 
               "except that an athletic program with a graduation success 
               rate that is above 60 percent, disaggregated by team, shall 
               not be subject to the requirements of this paragraph." 

               The author has substituted the NCAA definition for 
               "Graduation Success Rate" for the bill's earlier 
               "Graduation Rate" language, in order to be internally 
               consistent, and consistent with the source of existing 
               disclosures required of institutions of higher education 
               under AB 2079 - Torlakson (discussed below). 

               "Graduation Success Rate," means the percentage of student 
               athletes who graduate from that institution of higher 
               education within six years of their initial enrollment, 
               excluding outgoing transfers in good academic standing with 
               athletic eligibility remaining, and including incoming 
               transfers.  The rate is to be calculated by combining the 
               rates of the four most recent classes that are available in 
               the exact manner as the rate is calculated under NCAA 
               rules."

              b)   Transfer Requests  :  The author also agreed to remove the 
               requirement that institutions of higher education must 
               grant all student athlete's request to transfer.  Instead, 
               the bill now requires that the athletic director must 
               respond to the request with an answer within 7 business 
               days.  Existing NCAA rules provide for an expeditious 
               review of any decision as discussed in Comment 4 below.

              c)   Extended Insurance Coverage Requirement  :  The amendments 
               also rewrite the requirement that universities cover the 
               costs of insuring student-athletes against harm, and 
               clarify the time period that the students must be insured 
               beyond their time at the university, as follows:

               If a student athlete suffers an injury resulting from his 
               or her participation in the athletic program that requires 








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               ongoing medical treatment the athletic program must provide 
               one of the following for a minimum of two years following 
               the student athlete's graduation or separation from the 
               institution of higher education: 

                             The necessary medical treatment, or
                             Health insurance that covers the injury and 
                     the resulting deductible amounts.  

               This subdivision does not extend to pre-existing medical 
               conditions that pre-dated the student-athlete's 
               participation in the athletic program.

              a)   Delete State Controller Duties  :  Prior version of the 
               bill had various duties assigned to the State Controller's 
               Office, the most recent of which was to determine which 
               California Institutions of higher education had media 
               derived income of $10 million.  The author has agreed to 
               amend the bill to remove this requirement.

           1)NCAA Rules  :

            The NCAA is a voluntary association of about 1,200 colleges 
            and universities, athletic conferences, and sports 
            organizations that administer intercollegiate athletics.  
            Volunteer representatives from these schools and conferences 
            establish rules that govern the NCAA and  
            programs designed to further its purposes and goals.   

              a)   Rules Regarding Transfers  : 

               An athletics staff member or other representative of an 
               institution may not make contact with a student-athlete of 
               another NCAA or NAIA four-year collegiate institution 
               without first obtaining written permission of the first 
               institution's athletic director. If permission is granted, 
               all NCAA recruiting rules apply.

               If an institution receives a written request from a 
               student-athlete to permit another institution to contact 
               the student-athlete about transferring, the institution 
               shall grant or deny the request within seven business days.

               If the institution denies the student-athlete's request to 
               permit any other institution to contact them about 








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               transferring, the institution shall inform the 
               student-athlete in writing that s/he may request a hearing 
               conducted by an institutional entity or committee outside 
               of the athletics department. The hearing shall be conducted 
               and a decision rendered in writing within 15 days of 
               receipt of the written request for a hearing.

               A one-time transfer exception exists for student-athletes 
               competing in sports other than baseball, basketball, bowl 
               subdivision football or men's ice hockey, if specified 
               conditions are met. This rule also has exceptions for 
               student-athletes in the specified sports that were not 
               recruited by the original institution and have never 
               received athletic aid from any institution.  Also, 
               student-athletes who have earned a bachelor's degree may 
               also use the one-time transfer exception under specified 
               conditions.

              b)   Rules Regarding Student-Athlete Finances  :  
           
               The 2011-12 Guide for the College-Bound Student-Athlete, 
               and other links on the NCAA's website, provides information 
               about several aspects of becoming a collegiate athlete, 
               including athletically related financial aid and recruiting 
               regulations.  Specifically:

                           Athletic scholarships in Divisions I and II 
                    are initially awarded for up to one academic year, and 
                    may be renewed annually for up to five years (D-I) or 
                    up to a total of 10 semesters/15 quarters (D-II).  
                    Division III institutions do not award athletic 
                    financial aid.

                           Effective August 1, 2012, D-I allows 
                    institutions to provide athletic aid for a period not 
                    less than one year and that does not exceed the 
                    student's five-year period of eligibility.

                           Athletic scholarships can be renewed, reduced, 
                    increased or canceled from year to year for any 
                    reason.

                           During the one-year period of the award, the 
                    athletic scholarship may not be renewed, reduced or 
                    canceled except under four specified conditions: 1) 








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                    the student-athlete rendered himself or herself 
                    ineligible;  2) the student-athlete fraudulently 
                    misrepresents himself or herself;  3) the 
                    student-athlete engages in serious misconduct as 
                    determine by the institution's regular student 
                    disciplinary authority;  and 4) the student 
                    voluntarily withdraws from the team (and requesting 
                    permission to contact or transfer does not constitute 
                    withdrawing from the team).  

                           Any time the athletics aid is not renewed, or 
                    is reduced or canceled, the student-athlete must be 
                    notified in writing of his or her right to request an 
                    appeal, and the appeal must be heard by the 
                    institution's regular financial aid authority.

                           Athletic scholarships are awarded in a variety 
                    of amounts.

                           The total amount of financial aid a 
                    student-athlete can receive may be limited, and may 
                    affect whether a student-athlete may accept additional 
                    financial aid.

               The NCAA recently updated their bylaws that regulate 
               recruiting, scholarship levels, timing and methods of 
               communication between IHEs and student athletes.  Rules 
               governing Division I, II and III IHEs are not necessarily 
               the same across divisions.  Currently, NCAA bylaws impose a 
               number of restrictions on student athlete financial 
                                                            assistance.  For example, NCAA D-1 schools:

                           Effective August 1, 2012, Division I allows 
                    institutions to provide athletic aid for a period not 
                    less than one year and that does not exceed the 
                    student's five-year period of eligibility.

                           Under the new Division I multiyear aid 
                    legislation, any athletic scholarship that is awarded  
                    for more than one year can not be renewed, reduced or 
                    canceled during the period of the award except under 
                    four specified conditions: 1) the student-athlete 
                    rendered himself or herself ineligible; 2) the 
                    student-athlete fraudulently misrepresents himself or 
                    herself; 3) the student-athlete engages in serious 








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                    misconduct as determine by the institution's regular 
                    student disciplinary authority; and 4) the student 
                    voluntarily withdraws from the team (and requesting 
                    permission to contact or transfer does not constitute 
                    withdrawing from the team).

                           Are permitted to provide medical insurance for 
                    its student-athletes.

                           Cannot award financial aid to a student 
                    athlete that exceeds the cost of attendance that 
                    normally is incurred by students enrolled in a 
                    comparable program at that institution.

                           A student-athlete may be employed, provided 
                    they are only be paid for work actually performed and 
                    the pay rate must be commiserate with the going rate 
                    for someone with similar skills and experience and the 
                    employer does not pay the student-athlete based on his 
                    or her athletics reputation.

           1)Existing Medical Coverage for Collegiate Athletes :  

            NCAA rules require each student-athlete to be covered by 
            individual, parental or institutional medical insurance prior 
            to competing in interscholastic athletics.  Universities are 
            authorized to provide medical insurance; coverage varies from 
            campus to campus.  

              a)   University Based Insurance  :

               The UC administers the Student Health Insurance Plan that 
               covers athletic injuries only at the San Diego and Santa 
               Barbara campuses, coverage for athletes at other UC 
               campuses varies.  

               The California State University Risk Management Authority 
               administers the Athletic Injury Medical Expense, which 
               provides secondary coverage for medical expenses from 
               athletic injuries not paid by the student's primary 
               insurance.  

               The University of Southern California reviews 
               permanent/career-ending injuries on a case-by-case basis 
               and may offer a medical athletic scholarship for the 








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               identical time frame and financial aid level for a period 
               corresponding to one bachelor's degree (16 unit minimum per 
               semester).  If offered a medical athletic scholarship, the 
               student-athlete must work the same work hours and regime as 
               a student-athlete that has exhausted eligibility.

              b)   NCAA Catastrophic Insurance Program  :  

              Among other things, the NCAA Catastrophic Insurance Program 
            provides:  

                           College education benefit provides payment of 
                    the full standard cost of attendance for a totally 
                    disabled person to complete his or her undergraduate 
                    and/or graduate degree.  The disabled person must 
                    recommence studies within 5 years and complete the 
                    degree within 20 years.  The maximum lifetime college 
                    education benefit is $120,000.

                           Vocational rehabilitation benefit provides 
                    payment for expenses incurred for services rendered 
                    through a vocational rehabilitation program or 
                    counseling services to enable the person to develop 
                    skills necessary for gainful employment and to 
                    participate in a job search and find gainful 
                    employment.  The maximum lifetime vocational 
                    rehabilitation benefit is $60,000.

                           Maximum benefit per person per accident, for 
                    all benefits combined is $20 million.

                           Custodial care maximum is $100,000 per 
                    calendar year.

                           Home health care maximum is $100,000 per 
                    calendar year.

                           Combined home and custodial is $100,000, 
                    increasing by $10,000 on the 10th anniversary of the 
                    accident and on each subsequent 10th anniversary.

                           Private duty nursing maximum is $250,000 per 
                    calendar year.

                           Combined private duty nursing, custodial and 








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                    home health is $250,000.

                           Total disability benefit is $300 each month 
                    for up to 12 months, and $2,000 each month thereafter 
                    ($2,000 monthly benefit increases by 4% after the 
                    $2,000 benefit has been paid for 12 consecutive 
                    months.

                           Partial disability maximum benefit is $1,500 
                    each month, increasing by 4% after the benefit has 
                    been paid for 12 consecutive months.  The benefit is 
                    to be reduced by of the after-tax monthly compensation 
                    earned by the insured person in excess of $1,000 per 
                    month.

                           Adjustment expense benefit maximum is $50,000 
                    lifetime (training family to perform rehabilitative or 
                    custodial functions, travel for family, loss of 
                    earnings by injured person's spouse or parent, and 
                    family counseling.

                           Special expense benefit for special items 
                    approved by the person's doctor to accommodate his or 
                    her physical disability, such as home or automobile 
                    modifications.  

                           Benefits are limited to:
                    $125,000 during the first 10 years.
                   $50,000 for years 10-20.
                    $60,000 for years 20-30.
                   $75,000 for years 30-40.

           1)Double Referral  :  This bill is double-referred to the Assembly 
            Higher Education Committee.

           2)Prior and Related Legislation  :

            AB 1743 (Campos), Chapter 16, Statutes of 2012, clarified that 
            the online scholarship disclosures required of a California 
            postsecondary educational institution only apply to 
            institutions that offer athletic scholarships to "student 
            athletes".

            AB 2079 (Torlakson-Davis), Chapter 592, Statutes of 2010 
            provided that all California postsecondary educational 








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            institutions that offer athletic scholarships are required to 
            provide specified scholarship information on their websites.  

            AB 95 (Torlakson), of the 2008-09 Legislative Session, would 
            have required athletic recruiters to provide student athletes 
            with specified information relating to the college athletic 
            program within one week of initiating personal contact with 
            the student athlete for purposes of athletic recruiting.  
            Status:  Filed with the Chief Clerk pursuant to Joint Rule 56. 
             Died pursuant to Art. IV, Sec. 10(c) of the Constitution.

            SB 193 (Murray), of the 2002-03 Legislative Session, would 
            have prohibited California institutions of higher education 
            from participating in any organizations that regulates student 
            athletic scholarships, including the NCAA.  Status:  Held in 
            the Assembly Higher Education Committee.
           
          REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          National Collegiate Players Association (Sponsors)
          American Association of University Women
           
            Opposition 
           
          Association of Independent California Colleges and Universities
          California State University
          Stanford University
          University of California at Berkeley
          University of California at Los Angeles
          University of Southern California


           Analysis Prepared by  :    Dana Mitchell / A.,E.,S.,T. & I.M. / 
          (916) 319-3450 

















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                Amendments Mock-up for 2011-2012 SB-1525 (Padilla (S))  
                                           
                      *********Amendments are in BOLD*********

             Mock-up based on Version Number 96 - Amended Senate 5/29/12
              Submitted by: Committee on Arts, Ent., Sports, Tourism & 
            Internet media                                              

             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) 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.

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

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

          (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.

          (g) Athletic programs in this state are subject to federal 








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          gender equity requirements under Title IX of the Education 
          Amendments of 1972 (20 U.S.C. Sec. 1681 et seq.).

          (h) An institution of higher education should not punish any 
          student athlete for transferring to another institution of 
          higher education.
          (i) An institution of higher education should not use funds for 
          purposes of this part that are dedicated for the benefit of the 
          general student body. 
             


                           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 (d).

          (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  .
          "Graduation success rate," means the percentage of student 
          athletes who graduate from that institution of higher education 
          within six years of their initial enrollment, excluding outgoing 
          transfers in good academic standing with athletic eligibility 
          remaining, and including incoming transfers.  The rate is to be 
          calculated by combining the rates of the four most recent 
          classes that are available in the exact manner as the rate is 
          calculated under NCAA rules.
          
          (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.

          (e) "Media rights" means rights to the live coverage, 
          tape-delayed coverage, and postevent footage use of athletic 
          games, practices, and interviews; royalties for the use of a 
          player's likeness or uniform, signage, or other sponsorships; 








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          and luxury box sales.

          (f) "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 student athlete who  has suffered an injury who  
           suffers an incapacitating injury or illness resulting from his 
          or her participation in the athletic program, and the 
          institution of higher education's medical staff determines that 
          he or she is declared medically ineligible to participate in 
          intercollegiate athletics, 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 up to  four  five academic years or until the 
          student athlete completes his or her undergraduate degree, 
          whichever period is shorter. Additional years may be provided at 
          the institution of higher education's discretion.

           (2)  (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  four  five -year 
          limit on eligibility for an equivalent scholarship imposed by 
          paragraph  (1)  (A).

          (3)  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  . An athletic program shall 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 or until the 
          student-athlete completes his or her primary undergraduate 
          degree, whichever is shorter, except that an athletic program 
          with a graduation success rate that is above 60 percent, 








                                                                  SB 1525
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          disaggregated by team, shall not be subject to the requirements 
          of this paragraph.

          (4)  An athletic program may dismiss a student athlete from 
          participation in the program for cause.  A student-athlete whose 
          athletic scholarship is not renewed  who is dismissed  for cause 
           from  by an athletic program shall receive no benefits under this 
          part, but may 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.  
          athletically-related financial aid.
          
          (d) An athletic program shall  promptly approve  respond within 
          seven business days with an answer to a 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.









                                                                  SB 1525
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           (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)Unless a student athlete declines the payment of 
          premiums, an  An  athletic program shall be responsible for 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.

          (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  . If a 
          student athlete suffers an injury resulting from his or her 
          participation in the athletic program that requires ongoing 
          medical treatment the athletic program must provide one of the 
          following for a minimum of two years following the student 
          athlete's graduation or separation from the institution of 
          higher education: 

            (i)   the necessary medical treatment, or
            (ii)   health insurance that covers the injury and the 
                 resulting deductible amounts.  

          This subdivision does not extend to pre-existing medical 
          conditions that pre-dated the student-athlete's participation in 
          the athletic program.
          
          (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 








                                                                  SB 1525
                                                                  Page  20

          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.