No Elite Athletes Using X-pro status to ensure Prioritizing Recruitment Of Student-athletes (NEAUX PROS) Act

sport, in organized practice or competition against another institution of higher education, whether or not the individual receives athletically related student financial assistance. (4) Professional sports contract.-- (A) In general.--The term ``professional sports contract'' means a binding contract, express or implied, between an individual and a professional sports team, league, club, or other organization that organizes or sanctions professional-level competition in a sport, under which the individual is entitled to receive a salary, signing bonus, or other compensation in exchange for the individual's athletic services in that sport. (B) Exclusions.--The term does not include-- (i) an agreement relating solely to the use of an individual's name, image, or likeness that does not obligate the individual to render athletic services to a professional sports team, league, club, or organization; or (ii) compensation paid to the individual directly by a covered institution, including compensation paid under a revenue-sharing arrangement permitted under the settlement approved in In re College Athlete NIL Litigation (N.D. Cal.) or successor authority, or under any Federal statute enacted after the date of enactment of this Act that expressly authorizes such compensation without loss of intercollegiate athletics eligibility. (5) Professional athlete.--The term ``professional athlete'' means, with respect to a covered sport, an individual who is a party to a professional sports contract for that covered sport and who has not rescinded that contract in accordance with section 5(a). (6) Covered athletics official.--The term ``covered athletics official'' means, with respect to a covered institution, an individual who, as an employee or agent of the covered institution (including a head coach, assistant coach, athletic director, general manager, or other athletics department staff member), has authority to recruit prospective student-athletes, extend an offer of athletically related student financial assistance, sign a prospective student- athlete to a National Letter of Intent or substantially equivalent instrument, or certify the eligibility of a student- athlete to compete in intercollegiate athletics competition, or who knowingly directs or authorizes another person to take any such action. (7) Secretary.--The term ``Secretary'' means the Secretary of Education. SEC. 4. CONDITION ON PROGRAM PARTICIPATION AGREEMENTS. (a) In General.--Section 487(a) of the Higher Education Act of 1965 (20 U.S.C. 1094(a)) is amended-- (1) in paragraph (28), by striking ``and'' at the end; (2) in paragraph (29), by striking the period at the end and inserting ``; and''; and (3) by adding at the end the following: ``(30) The institution will not permit an individual whom the institution knows, or in the exercise of reasonable diligence should know, is a professional athlete (as defined in section 3 of the Collegiate Amateur Athletics Protection Act of 2026) to compete in intercollegiate athletics competition (as so defined) in the covered sport in which the individual holds a professional sports contract.''. (b) Guidance and Verification Process.--The Secretary shall issue guidance establishing-- (1) standards for the diligence a covered institution is expected to exercise in determining whether a prospective or current student-athlete is a professional athlete for purposes of paragraph (30) of section 487(a) of the Higher Education Act of 1965, as added by subsection (a); and (2) a process by which a covered institution or a covered athletics official may seek a written determination from the Department of Education regarding the status of a particular individual under that paragraph. (c) Enforcement.--A violation of paragraph (30) of section 487(a) of the Higher Education Act of 1965, as added by subsection (a), shall be treated as a violation of a program participation agreement for purposes of part G of title IV of that Act (20 U.S.C. 1094 et seq.), and shall be subject to the limitation, suspension, and termination procedures, and other remedies, available to the Secretary under that part. SEC. 5. RESCISSION; TRANSITION FOR CURRENT COMPETITORS. (a) Rescission.--An individual who has entered into a professional sports contract for a covered sport is not a professional athlete for purposes of this Act with respect to that covered sport if, before receiving any compensation under the contract and before rendering any athletic services under the contract, the individual-- (1) rescinds the contract in writing; and (2) provides written notice of the rescission to the covered institution at which the individual seeks to compete and to the professional sports team, league, club, or organization that was a party to the contract. (b) Transition for Current Competitors.--The amendment made by section 4(a) shall not apply with respect to an individual who, as of the date of enactment of this Act, is both a party to a professional sports contract for a covered sport and is competing in intercollegiate athletics competition in that covered sport, until the first day of the first academic year of the relevant covered institution that begins after the date of enactment of this Act. SEC. 6. RULE OF CONSTRUCTION. Nothing in this Act, or the amendment made by this Act, shall be construed to-- (1) restrict the eligibility of an individual to be selected in, or to negotiate the terms of a potential contract arising from, a draft or other selection process conducted by a professional sports team, league, club, or organization; (2) affect the eligibility of an individual to receive compensation for the use of the individual's name, image, or likeness, except to the extent such compensation is paid pursuant to a professional sports contract as defined in section 3; (3) limit the authority of a covered institution, or of an athletic association or conference of which a covered institution is a member, to adopt or enforce eligibility rules more restrictive than the requirements of this Act; (4) create a private right of action against a covered institution, the Secretary, or any other person; or (5) affect the availability of prosecution under any other applicable Federal criminal statute, including sections 201, 224, 1001, 1341, and 1343 of title 18, United States Code. SEC. 7. CRIMINAL PENALTIES FOR KNOWING RECRUITMENT OR SIGNING OF PROFESSIONAL ATHLETES. (a) In General.--Chapter 11 of title 18, United States Code, is amended by adding at the end the following: ``Sec. 228. Recruitment or facilitation of ineligible professional athlete participation in intercollegiate athletics ``(a) Offense.--It shall be unlawful for a covered athletics official knowingly to recruit, offer to enroll, sign to a National Letter of Intent or substantially equivalent instrument, certify the eligibility of, or otherwise cause to compete in intercollegiate athletics competition, an individual whom the official knows to be a professional athlete, if-- ``(1) the recruitment, offer, signing, certification, or other act is in or affecting interstate or foreign commerce; or ``(2) the covered institution by which the official is employed, or for which the official acts as an agent, receives, in the 1-year period before the offense, benefits in excess of $10,000 under a Federal program involving a grant, contract, subsidy, loan, guarantee, insurance, or other form of Federal assistance. ``(b) Penalty.--A person who violates subsection (a) shall be fined under this title, imprisoned not more than 5 years, or both. ``(c) Enhanced Penalty.--A person who violates subsection (a) shall be fined under this title, imprisoned not more than 10 years, or both, if the violation was undertaken for financial gain or was part of a pattern of 2 or more violations of subsection (a). ``(d) Affirmative Defense.--It is an affirmative defense to a prosecution under this section that the defendant reasonably relied on a written determination issued under section 4(b)(2) of the Collegiate Amateur Athletics Protection Act of 2026 that the individual was not a professional athlete, and that the determination had not been withdrawn or superseded at the time of the conduct at issue. ``(e) No Institutional Liability.--This section does not impose criminal liability on a covered institution as an organization. Liability under this section attaches only to an individual covered athletics official who violates subsection (a). ``(f) Venue.--A prosecution under this section may be brought in any judicial district in which the covered institution involved is located or in which any act in furtherance of the offense occurred. ``(g) Definitions.--In this section, the terms `covered athletics official', `covered institution', `professional athlete', and `intercollegiate athletics competition' have the meanings given those terms in section 3 of the Collegiate Amateur Athletics Protection Act of 2026.''. (b) Clerical Amendment.--The table of sections for chapter 11 of title 18, United States Code, is amended by adding at the end the following: ``228. Recruitment or facilitation of ineligible professional athlete participation in intercollegiate athletics.''. SEC. 8. EFFECTIVE DATE. (a) Funding Condition.--Except as provided in section 5(b), the amendment made by section 4(a) shall take effect on the first day of the first academic year of a covered institution that begins after the date of enactment of this Act. (b) Criminal Penalties.--Section 7, and the amendments made by that section, take effect on the date of enactment of this Act, and apply only to conduct occurring on or after that date. SEC. 9. SEVERABILITY. If any provision of this Act, or the application of a provision to any person or circumstance, is held to be unconstitutional or otherwise invalid, the remainder of this Act, and the application of that provision to any other person or circumstance, shall not be affected. <all>