BILL ANALYSIS �
SB 1525
Page 1
Date of Hearing: July 3, 2012
ASSEMBLY COMMITTEE ON HIGHER EDUCATION
Marty Block, Chair
SB 1525 (Padilla) - As Amended: July 2, 2012
SENATE VOTE : 22-14
SUBJECT : Student Athlete Bill of Rights.
SUMMARY : Enacts the Student Athlete Bill of Rights that
requires intercollegiate athletic programs at universities, as
defined, to provide scholarships to injured student athletes,
continue to pay specified medical expenses for a student athlete
who was injured, and conduct financial and life skills workshops
for student athletes, and clarifies the process for student
athletes seeking a transfer. Specifically, this bill :
1)Applies these provisions to institutions of higher education
that receives $10 million or more in annual income derived
from media rights for intercollegiate athletics, as specified,
and provides that universities 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. Under this provision, this
bill would apply to the Berkeley and Los Angeles campuses of
the University of California (UC), the University of Southern
California (USC), and Stanford University.
2)Requires universities to provide the following scholarships to
student athletes:
a) An equivalent scholarship for up to five academic years
or until the student athlete completes his or her
undergraduate degree, whichever period is shorter, 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. Clarifies that a temporary
leave of absence by a student does not count against the
five-year limit on eligibility.
b) An equivalent scholarship to a student athlete for up to
one year or until the student athlete completes his or her
primary undergraduate degree, whichever is shorter, if the
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student was on an athletic scholarship and is in good
standing but has exhausted his or her athletic eligibility.
Exempts from this provision, athletic programs with a
graduation success rate over 60%, as specified.
c) Exempts student athletes whose athletic scholarships are
not renewed for cause but allows a student to appeal the
decision at the university or within the conference or
association of which the university is a member, as
appropriate.
3)Requires athletic programs to conduct financial and life
skills workshops for all of its first-year and third-year
student athletes, as specified, including, but not 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, as well as information on time management skills
necessary for success as a student athlete and the academic
resources available on campus.
4)Requires universities to 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 an athletic program to pay for the following:
a) The medical insurance premiums of each of its student
athletes, whose household income would qualify them for Cal
Grant A awards, as defined, for insurance covering claims
resulting from their participation in the athletic program,
unless a student athlete declines the payment of premiums.
b) The insurance deductible applicable to the claim of any
student athlete who suffers an injury resulting from his or
her participation in the athletic program.
c) Either of the following for a minimum of two years from
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the student athlete's graduation or separation from the
institution of higher education for any student athlete who
suffers an injury resulting from his or her participation
in the athletic program that requires ongoing medical
treatment, excluding pre-existing conditions:
i) The necessary medical treatment, or,
ii) The health insurance that covers the injury and
resulting deductible amounts.
7)Requires an athletic program adopt and implement guidelines to
prevent, assess, and treat sports-related concussions and
dehydration, as well as implement exercise and supervision
guidelines for any student athlete identified with potentially
life-threatening health conditions.
8)Defines the following terms:
a) "Athletic association" means any organization that is
responsible for governing intercollegiate programs.
b) "Athletic program" means an intercollegiate athletic
program at any institution of higher education, as defined.
c) "Graduate 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. Specifies that this 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 the National Collegiate Athletics Association (NCAA)
rules.
d) "Institution of higher education" means any UC campus or
campus of the California State University (CSU), 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
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other sponsorships; 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.
9)Commences these provisions with the 2013-14 academic year.
10)Makes numerous legislative findings and declarations.
11)Sunsets these provisions on January 1, 2021.
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 to participate in intercollegiate sporting
activities. Some exceptions may be granted in accordance with
NCAA rules. A person who violates these rules are subject to
a civil penalty of up to $10,000, or three times the amount
given, offered or promised, whichever is greater. (Education
Code � 67360)
2)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. (EC � 67361)
3)Requires California postsecondary educational institutions
that offer athletic scholarships to provide specific
information on its website, such as NCAA policy on scholarship
duration, the most recent cost of attendance, and their policy
on athletically related medical expenses. (EC � 67365)
FISCAL EFFECT : According to the Senate Appropriations
Committee analysis prior to the most recent amendments, this
bill will result in the following costs:
1)UC: Potentially significant cost pressure on the UCLA and UC
Berkeley campus budgets to backfill any reduction of support
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for activities that currently receive financial support from
media rights revenues.
2)CSU: CSU does not believe that any of its campuses currently
meet the threshold for this bill to apply but projects that
San Diego State University will in the near future, resulting
in increased annual costs of $500,000 at that time.
3)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 : This bill was approved by the Arts, Entertainment,
Sports, Tourism, and Internet Media Committee on June 26, 2012,
by a vote of 5-1, as proposed to be amended with the language
that was amended into this bill on July 2.
Need for this bill . According to the author, "Current law only
requires that institutions of higher education post information
related to athletic financial aid, cost of attendance, the cost
of medical expenses, who holds the responsibility to pay for
medical expenses and transfer policies. 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."
Affected students . 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,
with San Diego State University likely to meet this threshold in
the near future. 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.
Recent amendments and NCAA rules . The NCAA is a voluntary
association of about 1,200 colleges and universities, athletic
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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.
The affected universities raised significant concerns that some
provisions were inconsistent with NCAA rules. Recent
amendments, accepted in the Arts Committee and now in print,
addressed the universities' concerns about provisions related to
the ability of student athletes to transfer to competitor
institutions, medical coverage for injured student athletes, and
equivalent scholarships for student athletes.
Relevant NCAA rules .
1)Length of athletic eligibility. NCAA eligibility rules
require student athletes, among other things, to take a
certain number of units each year, maintain a minimum grade
point average, and make progress toward their degree.
Division I student athletes are allowed five years to graduate
while receiving athletically related financial aid. This bill
requires some universities to provide an equivalent
scholarship to a student athlete who has used his or her
eligibility, but that scholarship is not an athletic
scholarship nor does it enable a student athlete to compete
beyond NCAA eligibility timelines.
2)Existing medical coverage. 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.
3)NCAA catastrophic insurance program. Among other things, the
NCAA Catastrophic Insurance Program provides:
a) 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
five years and complete the degree within 20 years. The
maximum lifetime college education benefit is $120,000.
b) Vocational rehabilitation benefit provides payment for
expenses incurred for services rendered through a
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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.
c) Maximum benefit per person per accident, for all
benefits combined is $20 million.
d) Custodial care maximum is $100,000 per calendar year.
e) Home health care maximum is $100,000 per calendar year.
f) Combined home and custodial is $100,000, increasing by
$10,000 on the 10th anniversary of the accident and on each
subsequent 10th anniversary.
g) Private duty nursing maximum is $250,000 per calendar
year.
h) Combined private duty nursing, custodial and home health
is $250,000.
i) 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.
j) 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.
aa) 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.
bb) 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:
i) $125,000 during the first 10 years.
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ii) $50,000 for years 10-20.
iii) $60,000 for years 20-30.
iv) $75,000 for years 30-40.
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), Chapter 592, Statutes of 2010,
provided that all California postsecondary educational
institutions that offer athletic scholarships are required to
provide specified scholarship information on their websites.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file.
Opposition
None on file.
Analysis Prepared by : Sandra Fried / HIGHER ED. / (916)
319-3960