H.R. 10266 — No Elite Athletes Using X-pro status to ensure Prioritizing Recruitment Of Student-athletes (NEAUX PROS) Act

This section states findings that the Federal Government provides substantial title IV financial assistance to institutions of higher education that sponsor intercollegiate athletics, that such athletics have historically involved student-athletes not under professional contract in the same sport, and that permitting dual participation by professional athletes disadvantages other student-athletes and warrants conditioning an institution’s title IV eligibility on prohibiting it.

This section defines key terms for the Act, including covered institutions as institutions of higher education with program participation agreements under the Higher Education Act, covered sports as those with varsity intercollegiate teams at such institutions, professional sports contracts as those providing salary or bonuses for athletic services (excluding name-image-likeness agreements and certain institutional compensation), professional athletes as parties to such contracts, covered athletics officials as those with recruiting or eligibility authority, and the Secretary as the Secretary of Education.

This section prohibits institutions of higher education from permitting an individual whom they know or reasonably should know is a professional athlete to compete in intercollegiate athletics in the covered sport where that individual holds a professional sports contract, as a condition of eligibility for federal student aid programs. It directs the Secretary of Education to issue guidance establishing diligence standards and a verification process for determining professional athlete status, and subjects violations to limitation, suspension, and termination procedures.

This section permits an individual who signed a professional sports contract to rescind it in writing before receiving compensation or rendering services, thereby remaining eligible as a non-professional athlete, upon written notice to the covered institution and the professional team or league. It delays application of the amendment made by section 4(a) for individuals already under contract and competing in intercollegiate athletics until the first day of the first academic year beginning after the date of enactment.

This section clarifies that the Act does not restrict an individual's eligibility for professional sports drafts or contract negotiations, affect name-image-likeness compensation except under professional sports contracts, limit covered institutions or conferences from adopting stricter eligibility rules, create private rights of action, or affect prosecution under other federal criminal statutes including 18 U.S.C. §§ 201, 224, 1001, 1341, and 1343.

This section establishes criminal penalties for covered athletics officials who knowingly recruit, sign to a National Letter of Intent, certify eligibility of, or otherwise cause a known professional athlete to compete in intercollegiate athletics, if the act affects interstate commerce or the institution received more than $10,000 in federal benefits in the prior year. Violations carry fines and up to 5 years imprisonment, or up to 10 years if for financial gain or part of a pattern of two or more violations, with an affirmative defense for reasonable reliance on a written eligibility determination.

This section delays the effective date of the funding condition amendment in section 4(a) until the first day of the first academic year beginning after enactment at covered institutions. It makes the criminal penalties in section 7 effective on the date of enactment and applicable only to conduct occurring on or after that date.

This section provides that if any provision of the Act is held unconstitutional or invalid, the remainder of the Act and its application to other persons or circumstances remain in effect.