Pennsylvania Act 2024-89 — PUBLIC SCHOOL CODE OF 1949 - GROW PENNSYLVANIA MERIT SCHOLARSHIP PROGRAM, INSTITUTIONS OF HIGHER EDUCATION, GROW PENNSYLVANIA SCHOLARSHIP GRANT PROGRAM, INTERCOLLEGIATE ATHLETICS, AGENCY AND A REPEAL

Act text

Session of 2024

No. 2024-89

SB 1150

AN ACT

Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An act relating to the public school system, including certain provisions applicable as well to private and parochial schools; amending, revising, consolidating and changing the laws relating thereto," in the State System of Higher Education, further providing for definitions and providing for Grow Pennsylvania Merit Scholarship Program; providing for institutions of higher education, for Grow Pennsylvania Scholarship Grant Program and for intercollegiate athletics; in ready-to-succeed scholarship, further providing for agency; and making a repeal.

The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows:

Section 1. Section 2001-A of the act of March 10, 1949 (P.L.30, No.14), known as the Public School Code of 1949, is amended to read:

Section 2001-A. Definitions.--The following words and phrases when used in this article shall, for the purpose of this article, have the following meanings, respectively, except in those instances where the context clearly indicates a different meaning:

[(1)] "Affiliated entity" shall mean a private nonprofit corporation with the sole purpose of benefiting the State System of Higher Education or a State-owned university.

"Agency" shall mean the Pennsylvania Higher Education Assistance Agency.

"Approved course of study" shall mean a program offered by an institution that provides instruction in agriculture, computer science, business, education, special education, STEM education, engineering, nursing, allied health, criminal justice or other programs aligned to in-demand occupations approved by the agency.

[(1.1)] "Board" shall mean the Board of Governors of the State System of Higher Education.

"Campus police" shall mean all law enforcement personnel employed by the system who have successfully completed a campus police course of training approved under 53 Pa.C.S. Ch. 21 Subch. D (relating to municipal police education and training).

[(2)] "Chancellor" shall mean the chief executive officer of the State System of Higher Education.

[(3)] "Coalition bargaining" shall mean two (2) or more employers bargaining jointly with all of their employes in a particular category or bargaining unit so that one collective process would determine the conditions of employment for all employers in the appropriate units involved.

[(4)] "Commission" shall mean the presidents of the several institutions.

[(4.1)] "Commonwealth University of Pennsylvania" shall mean the institution comprised of Bloomsburg University of Pennsylvania, Lock Haven University of Pennsylvania and Mansfield University of Pennsylvania as consolidated under section 2002-A.

[(5)] "Council" shall mean the council of trustees of the individual institutions.

[(6)] "Deferment" shall mean any authorized delay in the payment by a student of all or part of his tuition fee, charges for room and board, application fee, student activity fee, or any other charge or fee.

[(6.1)] "Education record" shall have the same meaning as in the Family Educational Rights and Privacy Act of 1974 (Public Law 90-247, 20 U.S.C. § 1232g).

[(7)] "Employer" shall mean the Board of Governors of the State System of Higher Education as the successor employer to the Commonwealth of Pennsylvania.

[(8)] "Graduate assistant" means a graduate student appointed by the president and assigned to a faculty or staff member to assist in research, instruction and other related professional duties.

"Grounds" shall mean all lands and buildings owned, controlled, leased or managed by the system and all highways, trafficways and bicycle and pedestrian facilities that traverse or abut such lands and buildings.

[(9)] "Higher education" shall include any organized program of instruction, research or service primarily concerned with a field of organized knowledge, related theory, and associated practice or application of skills and which leads to a degree; that is, the work is creditable toward a degree.

"In-demand occupation" shall mean a job that is in demand by employers in this Commonwealth, requires a high level of skill and is likely to provide family-sustaining wages.

[(9.1)] "Initial member" shall mean a trustee serving on the council of trustees as of June 30, 2022, for an institution consolidated under section 2002-A that has been nominated and appointed by the Governor and confirmed by the Senate.

[(10)] "Institution" shall mean each of the State-owned colleges and university on the effective date hereof, or hereafter created, and including its personnel, and its physical plant, instructional equipment, records and all other property thereof.

[(10.1)] "Integrated council" shall mean each of the following:

(1) The Council of Trustees of Commonwealth University of Pennsylvania.

(2) The Council of Trustees of Pennsylvania Western University.

"Maintenance projects" shall mean those activities, materials, labor and contracts necessary to replace, restore, refurbish or enhance real property which do not alter the architectural or engineering characteristics of the structure, as follows: painting; window repair and replacement; roof repair and replacement; repointing and masonry repair; downspout and gutters; landscaping; roadways, parking facilities, track and athletic court resurfacing and reconstruction; sidewalk and curbing reconstruction and replacement; asbestos abatement (in accordance with all Federal and State statutes and regulations); caulking and insulation; and replacement, reconstruction and construction of non-load-bearing interior walls. No such project shall affect the structural integrity of any existing facility or utility system.

"Merit scholarship" shall mean the waiver of an amount equal to the differential between tuition for a resident and nonresident student.

[(10.2)] "Pennsylvania Western University" shall mean the institution comprised of California University of Pennsylvania, Clarion University of Pennsylvania and Edinboro University of Pennsylvania as consolidated under section 2002-A.

[(11)] "Professional employe" for the purposes of this act, professional employe means any employe whose work:

[(i)] (1) is predominately intellectual and varied in character;

[(ii)] (2) requires consistent exercise of discretion and judgment;

[(iii)] (3) requires knowledge of an advanced nature in the field of science or learning customarily acquired by specialized study in an institution of higher learning or its equivalent; and

[(iv)] (4) is of such character that the output or result accomplished cannot be standardized in relation to a given period of time.

[(12)] "Refund" shall mean any return payment, or remission, by an institution to a student of all or part of any sum he has paid for tuition, room and board, application or student activity fee or any other charge or fee.

[(13)] "Secretary" shall mean the Secretary of Education of the Commonwealth of Pennsylvania or such person as the secretary may designate to act on behalf of the secretary with regard to any of the duties and prerogatives imposed by this act.

[(14)] "State board" shall mean the State Board of Education.

"STEM" shall mean science, technology, engineering and mathematics.

[(15)] "Student" shall mean a person who is enrolled in a course of study in any institution which is subject to the provisions hereof.

[(16)] "Student association" shall mean the officially recognized representative body of the student population of each institution.

[(17)] "System" shall mean the State System of Higher Education.

[(17.1)] "Transitional member" shall mean a trustee serving on the council of trustees as of June 30, 2022, for an institution consolidated under section 2002-A, who is appointed to serve on an integrated council for a term beginning on July 15, 2022, until September 30, 2022, or upon confirmation of initial members by the Senate, whichever occurs earlier.

[(18)] "Waiver" shall mean any release from initial payment by a student of all or part of his tuition, charge for room and board, application or student activity fee or any other charge or fee.

[(19) "Maintenance projects" shall mean those activities, materials, labor and contracts necessary to replace, restore, refurbish or enhance real property which do not alter the architectural or engineering characteristics of the structure, as follows: painting; window repair and replacement; roof repair and replacement; repointing and masonry repair; downspout and gutters; landscaping; roadways, parking facilities, track and athletic court resurfacing and reconstruction; sidewalk and curbing reconstruction and replacement; asbestos abatement (in accordance with all State and Federal statutes and regulations); caulking and insulation; and replacement, reconstruction and construction of non-load bearing interior walls. No such project shall affect the structural integrity of any existing facility or utility system.

(20) "Campus police" shall mean all law enforcement personnel employed by the system who have successfully completed a campus police course of training approved under 53 Pa.C.S. Ch. 21 Subch. D (relating to municipal police education and training).

(21) "Grounds" shall mean all lands and buildings owned, controlled, leased or managed by the system and all highways, trafficways and bicycle and pedestrian facilities that traverse or abut such lands and buildings.]

Section 2. The act is amended by adding a section to read:

Section 2022-A. Grow Pennsylvania Merit Scholarship Program.--(a) Beginning with the class of first-time freshmen enrolling for the 2025-2026 academic year, the agency, in conjunction with the system, shall administer a program, which is established and shall be known as the Grow Pennsylvania Merit Scholarship Program. The agency shall award merit scholarships to eligible nonresident students.

(b) To be eligible for receipt of a merit scholarship, an eligible nonresident student must:

(1) Have a high school grade point average of at least 2.5 on a 4.0 scale.

(2) Be enrolled full time in person in an approved course of study at an institution, except that a person may take online courses that are part of the curriculum.

(3) Maintain satisfactory academic progress as defined by the agency.

(4) Not have earned a bachelor's degree or the equivalent.

(5) Enter into a written agreement with the agency to:

(i) Satisfy all degree requirements and other requirements of this section.

(ii) Commence employment in this Commonwealth within one year after completion of an approved course of study culminating in a bachelor's or associate's degree. The employment must be in in-demand occupations, as determined by the agency, for a period of twelve months of each academic year the student received a merit scholarship, unless the agency determines that there are extenuating circumstances.

(iii) Reimburse the agency the aggregate amount of a scholarship received under this section if the student breeches the agreement. For a student who partially satisfies the work requirement, the agency shall prorate the required reimbursement.

(c) The agency shall:

(1) Develop guidelines, including instructions for how a nonresident student may apply for a merit scholarship and how institutions may receive merit scholarship funds from the agency for scholarship recipients.

(2) Monitor and verify a student's compliance with the agreement and enforce repayment of all merit scholarships for a student who does not comply with the provisions of this section, including use of lawful collection procedures.

(d) A merit scholarship shall be for a maximum of four academic years or the completion of a bachelor's degree, whichever occurs first.

(e) (Reserved).

(f) If a student terminates enrollment in the approved course of study during the academic year or prior to completion of the approved course of study, the institution shall notify the agency in writing.

(g) Nothing in this subsection shall be construed to:

(1) Change a student's eligibility for a merit scholarship if the student terminates enrollment in one approved course of study and enrolls in a different approved course of study at the same institution or another institution.

(2) Require an institution to enforce any provision of this section relating to repayment of funds for failure to comply with this section.

(h) Money reimbursed to the agency under this section shall be transferred to the system.

(i) (1) The agency shall postpone the work requirement under subsection (b)(5) for extenuating circumstances, as determined by the agency, or if the student enrolls in a higher level degree program.

(2) A student that enrolls in a higher level degree program must provide the agency with documentation showing continual status as a full-time student in order to be given a postponement by the agency under this section.

(j) In any year when fewer than three hundred (300) merit scholarships are awarded, the Commonwealth shall pay to the system in the subsequent year the following amount:

(1) Subtract the number of merit scholarships awarded from three hundred (300).

(2) Multiply the sum in paragraph (1) by the differential between tuition for a resident and nonresident student.

(k) A merit scholarship received by a student shall not be considered taxable income for purposes of Article III of the act of March 4, 1971 (P.L.6, No.2), known as the "Tax Reform Code of 1971."

(l) The system shall provide assistance to the agency as necessary to administer the program.

(m) The system shall actively advertise and market the program to students and include information about the program on the system's publicly accessible Internet website and on each institution's publicly accessible Internet website.

(n) The agency, in consultation with the system, shall prepare and submit to the Governor, the General Assembly and the secretary no later than December 31, 2025, and each December 31 thereafter, a report detailing the operation of the program. The report shall, at a minimum, include:

(1) A list of the in-demand occupations for which merit scholarships may be sought.

(2) The number of merit scholarship applicants.

(3) The number of merit scholarships awarded to students.

(4) The number of merit scholarships awarded by approved course of study.

(5) The number of merit scholarships awarded by institution.

(6) The average amount of the merit scholarship.

(7) The number of merit scholarship recipients that are employed and meeting the work requirement under subsection (b)(5).

(8) The number of merit scholarship recipients that have not met the work requirement.

(9) The amount of money reimbursed to the agency by merit scholarship recipients that have not met the work requirement.

Section 3. The act is amended by adding articles to read:

ARTICLE XX-L

INSTITUTIONS OF HIGHER EDUCATION

SUBARTICLE A

PRELIMINARY PROVISIONS

Section 2001-L. Definitions.

The following words and phrases when used in this article shall have the meanings given to them in this section unless the context clearly indicates otherwise:

"Agency." The Pennsylvania Higher Education Assistance Agency.

"Board." The State Board of Higher Education established under section 2010-L.

"Community college." An institution created under Article XIX-A or the act of August 24, 1963 (P.L.1132, No.484), known as the Community College Act of 1963.

"Council." The Performance-based Funding Council established under Subarticle C.

"Department." The Department of Education of the Commonwealth.

"Financial aid." Funding to help a student pay for postsecondary education, including grants, work study, loans and scholarships.

"High-priority occupation." An occupation identified by the Department of Labor and Industry under the act of December 18, 2001 (P.L.949, No.114), known as the Workforce Development Act.

"Higher Education Scholarship Law." The act of January 25, 1966 (1965 P.L.1546, No.541), referred to as the Higher Education Scholarship Law.

"Independent institution of higher education." An institution of higher education which is operated not for profit, located in and incorporated or chartered by the Commonwealth and entitled to confer degrees as specified in 24 Pa.C.S. § 6505 (relating to power to confer degrees) and to apply to itself the designation "college" or "university" as provided for by the standards and qualifications prescribed by the State Board of Education under 24 Pa.C.S. Ch. 65 (relating to private colleges, universities and seminaries).

"Institution of higher education." As defined in section 1501-L.

"Institutional aid." Financial aid offered to an eligible student directly by an institution of higher education, including merit aid, gift aid and athletic awards.

"Pell Grant." The Federal Pell Grant or any successor program.

"Pennsylvania State grant." A grant or scholarship awarded under the Higher Education Scholarship Law.

"Private scholarship." Financial aid awards funded by entities other than the Federal or State Government, including awards by companies, service groups, foundations, organizations and individuals.

"Public institution of higher education." A State-owned university, community college or State-related university.

"State-owned university." An institution which is part of the State System of Higher Education under Article XX-A.

"State-related university." The Pennsylvania State University, the University of Pittsburgh, Temple University and Lincoln University.

"System." The State System of Higher Education established under Article XX-A.

SUBARTICLE B

(Reserved)

SUBARTICLE C

(Reserved)

SUBARTICLE D

GROW PENNSYLVANIA SCHOLARSHIP GRANT PROGRAM

Section 2050-L. Definitions.

The following words and phrases when used in this subarticle shall have the meanings given to them in this section unless the context clearly indicates otherwise:

"Agency." The Pennsylvania Higher Education Assistance Agency.

"Approved course of study." A program offered by an institution of higher education that provides instruction in agriculture, computer science, criminal justice, business, education, special education, STEM education, engineering, nursing, allied health, trades or other programs aligned to in-demand occupations approved by the agency.

"Educational cost." Tuition, mandatory fees, textbooks and other expenses paid to an institution of higher education and approved by the agency.

"Grant." A Grow Pennsylvania Scholarship Grant awarded under this subarticle.

"In-demand occupation." A job that is in demand by employers in this Commonwealth, requires a high level of skill and is likely to provide family-sustaining wages.

"Institution of higher education." Either of the following:

(1) An institution of higher education that is located in this Commonwealth and approved by the agency for enrollment of grant recipients under the act of January 25, 1966 (1965 P.L.1546, No.541), referred to as the Higher Education Scholarship Law.

(2) An institution of higher education established under Article XIX-G.

"Program." The Grow Pennsylvania Scholarship Grant Program established under this subarticle.

"STEM." Science, technology, engineering and mathematics.

"Student." An individual who is a resident of this Commonwealth and is admitted or enrolled at an institution of higher education.

"Trade." A program offered by the Pennsylvania College of Technology and the Thaddeus Stevens College of Technology.

Section 2051-L. Grow Pennsylvania Scholarship Grant Program.

The Grow Pennsylvania Scholarship Grant Program is established within the agency to award grants beginning in the 2024-2025 school year.

Section 2052-L. Agency duties.

The agency shall:

(1) Administer the program and, in its sole discretion, award grants to students who submit a completed application and satisfy the eligibility criteria in paragraph (4). The agency shall develop an application form that students may use to apply for a grant. The application of a student under 18 years of age or a student determined to be a dependent must include the signature of a parent or guardian.

(2) Use money appropriated for the purpose of awarding grants.

(3) Award a grant to a student in an amount of $5,000 per academic year or if the total amount of Federal and State grants available to the student exceeds the educational cost as determined by the agency, whichever is less. The agency, in its discretion, may provide for partial-year awards.

(4) Establish eligibility criteria in order for a student to receive a grant. The criteria shall, at a minimum, include that a student must:

(i) Be a resident of this Commonwealth as defined by the agency.

(ii) Be enrolled in an approved course of study.

(iii) Maintain satisfactory academic progress defined by the agency.

(iv) Not have earned a bachelor's degree or the equivalent.

(v) Enter into a written agreement with the agency to:

(A) Satisfy all degree requirements and other requirements under this subarticle.

(B) Commence employment in this Commonwealth within one year after completion of an approved course of study culminating in a bachelor's or associate's degree. The employment must be in an in-demand occupation, as determined by the agency, for a period of 12 months for each academic year the student received a grant, unless the agency determines that there are extenuating circumstances.

(C) Reimburse the Commonwealth the aggregate amount of a scholarship received under this subarticle if the student fails to comply with clauses (A) and (B). For a student who partially satisfies the work requirement, the agency shall prorate the required reimbursement.

(5) Monitor and verify a student's compliance with the agreement and enforce repayment of all grants for a student who does not comply with the provisions of this section, including use of all lawful collection procedures. Nothing under this paragraph shall be construed to require an institution of higher education to enforce any provision of this subarticle relating to repayment of funds for failure to comply with the provisions of this section.

(6) Advertise, market and provide outreach to students in traditionally underserved communities and include information about the program on the agency's publicly accessible Internet website.

Section 2053-L. Term of grant.

A grant shall be for a maximum of four academic years or the completion of a bachelor's degree, whichever occurs first.

Section 2054-L. Grant priority.

The agency shall:

(1) Establish a process for accepting and reviewing applications. The process shall ensure applications which meet the eligibility criteria and are complete will be awarded in the order received by the agency. The following shall apply:

(i) For the 2024-2025 school year, applications shall open no earlier than September 15.

(ii) For the 2025-2026 school year and each school year thereafter, applications shall open as follows:

(A) For the spring term, no earlier than September 15.

(B) For the fall term, no earlier than February 15.

(2) Give first priority in awarding grants for renewal applications.

Section 2055-L. Limitations.

The number of grants shall be limited to the amount of money appropriated to the agency for the program.

Section 2056-L. Termination.

(a) General rule.--If a student terminates enrollment in the approved course of study during the academic year or prior to completion of the approved course of study, the institution of higher education shall notify the agency in writing and shall return any unused portion of the grant to the agency.

(b) Construction.--Nothing in this subarticle shall be construed to change a student's eligibility for a grant if the student terminates enrollment in one approved course of study and enrolls in a different approved course of study at the same institution of higher education or another institution of higher education.

Section 2057-L. Reimbursed and returned money.

Money reimbursed and returned under sections 2052-L and 2056-L shall be used to provide additional grants.

Section 2058-L. Exception.

The agency shall postpone the work requirement under section 2053-L for extenuating circumstances, as determined by the agency, or if the student enrolls in a higher level degree program. A student that enrolls in a higher level degree program must provide the agency with documentation showing continual status as a full-time student in order to be given a postponement by the agency under this section.

Section 2059-L. Taxation.

A grant received by a student shall not be considered taxable income for purposes of Article III of the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971.

Section 2060-L. Construction.

Nothing in this subarticle shall be construed to disqualify an institution of higher education from receipt of money under the act of July 18, 1974 (P.L.483, No.174), known as The Institutional Assistance Grants Act.

Section 2061-L. Public outreach.

The agency shall actively advertise and market the program to resident students and include information about the program on the agency's publicly accessible Internet website.

Section 2062-L. Report.

The agency shall prepare and submit to the Governor, the General Assembly and the Secretary of Education, no later than December 31, 2025, and each December 31 thereafter, a report detailing the operation of the program. The report shall, at a minimum, include:

(1) A list of the in-demand occupation for which grants may be sought.

(2) The number of new grant applicants and renewal grant applications.

(3) The number of grants awarded to students.

(4) The number of grants awarded to students by approved course of study.

(5) The number of grants awarded to students by institution of higher education.

(6) The average value of a grant award.

(7) The number of grant recipients that are employed and meeting the work requirement under section 2052-L(4)(v)(B).

(8) The number of grant recipients that are employed and meeting the work requirement by occupation.

(9) The number of grant recipients that have not met the work requirement.

(10) The amount of money reimbursed to the Commonwealth by grant recipients that have not met the work requirement.

ARTICLE XX-M

INTERCOLLEGIATE ATHLETICS

Section 2001-M. Scope of article.

This article relates to college student athlete compensation related to name, image or likeness and professional representation.

Section 2002-M. Definitions.

The following words and phrases when used in this article shall have the meanings given to them in this section unless the context clearly indicates otherwise:

"Athlete agent." As defined in 5 Pa.C.S. § 3502 (relating to definitions).

"College student athlete." An individual enrolled at an institution of higher education who participates in intercollegiate athletics for the institution of higher education. The term does not include an individual whose participation is or was in a college intramural sport, club sport or in a professional sport outside of intercollegiate athletics.

"Institution of higher education." Any of the following:

(1) A university within the State System of Higher Education.

(2) The Pennsylvania State University, the University of Pittsburgh, Temple University, Lincoln University or any other institution designated as State-related by the Commonwealth.

(3) The Thaddeus Stevens College of Technology.

(4) A community college as defined in Article XIX-A.

(5) A college established under Article XIX-G.

(6) An institution of higher education located in and incorporated or chartered by the Commonwealth and entitled to confer degrees as specified in 24 Pa.C.S. § 6505 (relating to power to confer degrees) and as provided for by the standards and qualifications prescribed by the State Board of Education under 24 Pa.C.S. Ch. 65 (relating to private colleges, universities and seminaries).

(7) A private school licensed under the act of December 15, 1986 (P.L.1585, No.174), known as the Private Licensed Schools Act.

(8) A foreign corporation approved to operate an educational enterprise under 22 Pa. Code Ch. 36 (relating to foreign corporation standards).

"NCAA." The National Collegiate Athletic Association.

Section 2003-M. Compensation regarding college student athlete's name, image or likeness rights.

(a) Compensation allowed.--A college student athlete may earn compensation for the use of the college student athlete's name, image or likeness under this article.

(b) Prohibition regarding institutions of higher education.--An institution of higher education may not uphold a rule, requirement, standard or other limitation that prevents a college student athlete of the institution of higher education from earning compensation through the use of the college student athlete's name, image or likeness rights.

(c) Prohibitions regarding intercollegiate athletic entities.--An athletic association, conference or other group or organization with authority over intercollegiate athletics, including the NCAA, may not:

(1) Prevent a college student athlete from earning compensation through the use or license of the college student athlete's name, image or likeness rights.

(2) Prevent an institution of higher education from fully participating in intercollegiate athletics as a result of a college student athlete's use of the college student athlete's name, image or likeness rights to seek compensation.

(3) Entertain a complaint, open an investigation or take any other adverse action against an institution of higher education, or an entity acting on its behalf, an employee of an institution of higher education or a college student athlete for activity permitted under this article or for directly compensating a college student athlete for use of the college student athlete's name, image or likeness.

(d) Royalty payment.--A person that produces a college team jersey, a college team video game or college team trading cards for the purpose of making a profit shall make a royalty payment to each college student athlete whose name, image, likeness or other individually identifiable feature is used.

Section 2004-M. Professional representation.

(a) Prohibitions.--

(1) An institution of higher education, athletic association, conference or other group or organization with authority over intercollegiate athletics, including the NCAA, may not interfere with or prevent a college student athlete from fully participating in intercollegiate athletics for obtaining professional representation in relation to contracts or legal matters, including representation provided by athlete agents or legal representation provided by attorneys, in relation to a college student athlete's use of the college student athlete's name, image or likeness rights.

(2) An athletic association, conference or other group or organization with authority over intercollegiate athletics, including the NCAA, may not prevent an institution of higher education from fully participating in intercollegiate athletics without penalty to the institution or individual student as a result of a college student athlete obtaining professional representation in relation to contracts or legal matters, including representation provided by athlete agents or legal representation provided by attorneys, in relation to a college student athlete's use of the college student athlete's name, image or likeness rights.

(b) Qualifications.--Professional representation obtained by a college student athlete shall be from a person:

(1) acting as an athlete agent in accordance with 5 Pa.C.S. Ch. 35 (relating to athlete agents); or

(2) admitted to practice law by a court of record of this Commonwealth.

(c) Contents.--A contract by which a college student athlete authorizes an athlete agent, acting in accordance with 5 Pa.C.S. Ch. 35, to negotiate or solicit compensation for the use of the college student athlete's name, image or likeness shall include a statement that the contract does not obligate the college student athlete to use the athlete agent for any service beyond professional representation in relation to the use of the name, image or likeness.

Section 2005-M. Scholarships.

(a) Eligibility.--Earning compensation from the use of a college student athlete's name, image or likeness rights may not affect the college student athlete's scholarship eligibility, duration or renewal.

(b) Compensation.--

(1) For purposes of this article, an athletics grant-in-aid or stipend scholarship from an institution of higher education in which a college student athlete is enrolled may not be considered to limit a college student athlete's right to use the college student athlete's name, image or likeness rights, except as expressly provided in this section.

(2) An athletics grant-in-aid or stipend scholarship may not be revoked or reduced as a result of a college student athlete earning compensation under this article, except if otherwise mandated by Federal or State student aid guidelines.

Section 2006-M. Contracts.

(a) Opportunities.--An institution of higher education, athletic association, conference or other group or organization with authority over intercollegiate athletics may not be required to identify, create, facilitate, negotiate or enable opportunities for a college student athlete to earn compensation for the college student athlete's use of the college student athlete's name, image or likeness rights.

(b) Use of trademarks.--This article shall not establish or grant a right to a college student athlete to use the name, trademarks, services marks, logos, symbols or any other intellectual property, registered or unregistered, of an institution of higher education, athletic association, conference or other group or organization with authority over intercollegiate athletics, in furtherance of the college student athlete's opportunities to earn compensation for the college student athlete's use of the college student athlete's name, image or likeness rights.

(c) Enforcement.--This article shall not limit the right of an institution of higher education to establish and enforce any of the following:

(1) Academic standards, requirements, regulations or obligations for the institution of higher education's college student athletes.

(2) Team rules of conduct or other rules of conduct.

(3) Standards or policies regarding the governance or operation of or participation in intercollegiate athletics.

(4) Disciplinary rules and standards generally applicable to all students of the institution of higher education.

(d) Prohibition.--A college student athlete may not earn compensation as a result of the use of the college student athlete's name, image or likeness in connection with a person, company or organization related to or associated with the development, production, distribution, wholesaling or retailing of any of the following:

(1) Adult entertainment products and services.

(2) Alcohol products.

(3) Casinos and gambling, including sports betting, the lottery and betting in connection with video games, online games and mobile devices.

(4) Tobacco and electronic smoking products and devices.

(5) Prescription pharmaceuticals.

(6) A controlled dangerous substance.

(e) Prohibition.--

(1) An institution of higher education may prohibit a college student athlete's involvement in name, image or likeness activities that conflict with existing institutional sponsorship arrangements at the time the college student athlete executes a contract or discloses a contract to the institution of higher education as described under subsection (f).

(2) An institution of higher education, at the institution of higher education's discretion, may prohibit a college student athlete's involvement in name, image or likeness activities based on other considerations, such as conflict with institutional values, as defined by the institution of higher education.

(3) An institution of higher education shall have policies that specify the name, image or likeness activities in which college student athletes may or may not engage.

(f) Disclosure.--The following apply:

(1) A college student athlete who proposes to enter into a contract providing compensation to the college student athlete for use of the college student athlete's name, image or likeness rights may disclose the contents of the contract prior to execution of the contract to an official of the institution of higher education, who is designated by the institution of higher education.

(2) An institution of higher education may have policies that specify when the contract should be disclosed and the contents of the contract to be disclosed in accordance with paragraph (1).

(3) If an institution of higher education receives direct financial compensation from a third party arising from the third party's contract with a college student athlete relating to the use of a college student athlete's name, image or likeness, the institution shall be required to disclose in a timely manner the financial relationship between the institution and the third party to the college student athlete. This section shall not apply to compensation received by the institution of higher education for the use of the institution's intellectual property.

Section 2007-M. Violations and claims.

(a) Protections and right to adjudicate.--A college student athlete, institution of higher education or conference shall not be deprived of a protection provided under State law with respect to a controversy that arises in this Commonwealth and shall have the right to adjudication in this Commonwealth of a claim that arises in this Commonwealth.

(b) Private civil action.--A college student athlete shall have the right to pursue a private civil action against a person that violates this article. The court shall award costs and reasonable attorney fees to a prevailing plaintiff in an action brought against a person violating this article.

Section 2008-M. Settlements.

Legal settlements made on or after June 30, 2021, may not permit noncompliance with this article.

Section 2009-M. Severability.

The provisions of this article are severable. If any provision of this article or the application of any provision of this article is held to be invalid, that invalidity shall not affect any other provision or application of any other provision that can be given effect without the invalid provision or application.

Section 4. Section 2204-B(b) of the act is amended to read:

Section 2204-B. Agency.

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(b) Eligibility criteria.--The eligibility criteria developed for the receipt of a scholarship under subsection (a) shall, at a minimum, require all of the following:

(1) Total annual household income not to exceed [$126,000] $175,000 . With each new award year, the agency may annually adjust the total annual household income threshold under this paragraph to reflect any upward changes in the Consumer Price Index for All Urban Consumers (CPI-U) for the Pennsylvania, New Jersey, Delaware and Maryland area.

(2) At least half-time enrollment in an approved course of study.

(3) Demonstration of a grade point average of at least [3.25] 2.5 on a 4.0 scale.

(4) Compliance with all aspects of the State grant program except financial need.

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Section 5. Repeals are as follows:

(1) The General Assembly declares that the repeal under paragraph (2) is necessary to effectuate the addition of Article XX-M of the act.

(2) 5 Pa.C.S. Ch. 37 is repealed.

Section 6. The addition of Article XX-M of the act is a continuation of 5 Pa.C.S. Ch. 37. All activities initiated under 5 Pa.C.S. Ch. 37 shall continue and remain in full force and effect and may be completed under Article XX-M of the act. Orders, regulations, rules and decisions which were made under 5 Pa.C.S. Ch. 37 and which are in effect on the effective date of section 5(2) of this act shall remain in full force and effect until revoked, vacated or modified under Article XX-M of the act. Contracts, obligations and collective bargaining agreements entered into under 5 Pa.C.S. Ch. 37 are not affected nor impaired by the repeal of 5 Pa.C.S. Ch. 37.

Section 7. This act shall take effect immediately.

APPROVED--The 17th day of July, A.D. 2024.

JOSH SHAPIRO