1.1 	A bill for an act
1.2 	relating to higher education; requiring repayment of athletic scholarships under 
1.3 	certain conditions;proposing coding for new law in Minnesota Statutes, chapter 
1.4 	137.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. [137.50] ATHLETIC SCHOLARSHIP REPAYMENT.
1.7 	(a) As a condition of receiving an athletic scholarship from the University of 
1.8 	Minnesota, a student athlete must sign a written agreement obligating the student athlete 
1.9 	to repay the full amount of the scholarship benefit if the student athlete withdraws from 
1.10 	the university, with any athletic eligibility remaining, to become a professional athlete in 
1.11 	the sport for which the scholarship was awarded.
1.12 	(b) The written agreement must provide that any professional athletic contract 
1.13 	that the student athlete enters into after receiving an athletic scholarship must contain a 
1.14 	provision recognizing the University of Minnesota as a third-party beneficiary of the 
1.15 	contract, to the extent of athletic scholarship aid that has been received by the student 
1.16 	athlete from the University of Minnesota as of the date the contract is entered into. The 
1.17 	University of Minnesota's status as a third-party beneficiary is the right to receive directly 
1.18 	from the party that enters into the contract with the student athlete 25 percent of each 
1.19 	payment due to the student athlete under the contract, until the scholarship aid has been 
1.20 	repaid with simple interest at an annual rate of three percent.
1.21 	(c) If a student athlete enters into a professional athletic contract that does not 
1.22 	comply with paragraph (b), the party contracting with the student athlete is deemed to 
1.23 	have been aware of the requirements of paragraph (b), and the contract is deemed to 
1.24 	include those provisions, as if they had been expressly included.
2.1 	(d) The written agreement described in paragraph (a) and the contract described in 
2.2 	paragraph (b) must provide that the University of Minnesota is entitled to recover from the 
2.3 	student athlete any attorney fees and expenses incurred by the University of Minnesota in 
2.4 	enforcing its rights under this section in the event of a breach of the provisions required 
2.5 	under paragraphs (a) and (b).

2.6 	EFFECTIVE DATE. This section is effective the day following 
2.7 	final enactment.