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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10767 Introduced in House (IH)]
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119th CONGRESS
2d Session
H. R. 10767
To amend the Internal Revenue Code of 1986 to impose an excise tax on
colleges and universities allowing specified individuals to participate
in intercollegiate athletics.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 6, 2026
Mr. Smith of Nebraska (for himself and Mr. Boyle of Pennsylvania)
introduced the following bill; which was referred to the Committee on
Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to impose an excise tax on
colleges and universities allowing specified individuals to participate
in intercollegiate athletics.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Fair Play Enforcement Act''.
SEC. 2. IMPOSITION OF EXCISE TAX ON COLLEGES AND UNIVERSITIES ALLOWING
SPECIFIED INDIVIDUALS TO PARTICIPATE IN INTERCOLLEGIATE
ATHLETICS.
(a) In General.--Chapter 42 of the Internal Revenue Code of 1986 is
amended by adding at the end the following new subchapter:
``Subchapter I--Colleges and Universities Allowing Specified
Individuals to Participate in Intercollegiate Athletics
``Sec. 4969. Imposition of tax.
``SEC. 4969. IMPOSITION OF TAX.
``(a) In General.--There is hereby imposed on any eligible
educational institution which commits an athletic participation
violation during any taxable year a tax equal to the applicable
percentage of the gross athletic receipts of such institution for such
taxable year.
``(b) Applicable Percentage.--For purposes of subsection (a), the
applicable percentage with respect to any eligible educational
institution which commits an athletic participation violation during
any taxable year is determined under the following table with respect
to the aggregate number of separate athletic participation violations
committed by such institution during such taxable year and the
preceding 5 taxable years (referred to in such table as the `applicable
period'):
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The applicable
``If the number of violations during the applicable period is: percentage is:
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1 5 percent
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2 10 percent
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In excess of 2 20 percent
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``(c) Definitions.--For purposes of this section--
``(1) Eligible educational institution.--The term `eligible
educational institution' has the meaning given such term in
section 25A(f)(2).
``(2) Athletic participation violation.--
``(A) In general.--The term `athletic participation
violation' means, with respect to any eligible
educational institution, any instance in which such
institution knowingly allows the active participation
of a specified individual in any intercollegiate
athletic event or competition.
``(B) Exceptions.--Such term shall not include any
instance in which a specified individual--
``(i) actively participates in a practice
session for any intercollegiate athletic event
or competition,
``(ii) appears on a roster for, but does
not actively participate in, any
intercollegiate athletic event or competition,
or
``(iii) actively participates in any
intercollegiate athletic event or competition
pursuant to a court order.
``(C) Aggregation rule.--All athletic participation
violations committed by an eligible educational
institution with respect to individuals described in
paragraph (3)(A) shall be treated as one such violation
to the extent such violations are determined by the
Secretary to be derived from the same set of facts and
circumstances.
``(3) Specified individual.--The term `specified
individual' means, with respect to any intercollegiate athletic
event or competition, any individual--
``(A) who has placed any wager (without regard to
the manner in which placed) with respect to any
intercollegiate athletic event or competition, or
``(B) who has been employed as an athlete by, and
appeared on a roster for, a professional sports
franchise with respect to a similar athletic event or
competition.
``(4) Gross athletic receipts.--The term `gross athletic
receipts' means, with respect to any eligible educational
institution for any taxable year, the gross receipts of such
institution for such taxable year which are attributable to, or
derived in connection with, any intercollegiate athletic
program of such institution.
``(d) Regulations.--The Secretary shall prescribe such regulations
or other guidance as may be necessary or appropriate to carry out the
purposes of this section.''.
(b) Clerical Amendment.--The table of subchapters for chapter 42 of
such Code is amended by adding at the end the following new item:
``subchapter i--colleges and universities allowing specified
individuals to participate in intercollegiate athletics.''.
(c) Effective Date.--The amendments made by this section shall
apply with respect to taxable years ending after the date of the
enactment of this Act.
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