HF 2613

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to higher education; requiring repayment of athletic scholarships under
certain conditions; proposing coding for new law in Minnesota Statutes, chapter
137.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [137.50] ATHLETIC SCHOLARSHIP REPAYMENT.
new text end

new text begin (a) As a condition of receiving an athletic scholarship from the University of
Minnesota, a student athlete must sign a written agreement obligating the student athlete
to repay the full amount of the scholarship benefit if the student athlete withdraws from
the university, with any athletic eligibility remaining, to become a professional athlete in
the sport for which the scholarship was awarded.
new text end

new text begin (b) The written agreement must provide that any professional athletic contract
that the student athlete enters into after receiving an athletic scholarship must contain a
provision recognizing the University of Minnesota as a third-party beneficiary of the
contract, to the extent of athletic scholarship aid that has been received by the student
athlete from the University of Minnesota as of the date the contract is entered into. The
University of Minnesota's status as a third-party beneficiary is the right to receive directly
from the party that enters into the contract with the student athlete 25 percent of each
payment due to the student athlete under the contract, until the scholarship aid has been
repaid with simple interest at an annual rate of three percent.
new text end

new text begin (c) If a student athlete enters into a professional athletic contract that does not
comply with paragraph (b), the party contracting with the student athlete is deemed to
have been aware of the requirements of paragraph (b), and the contract is deemed to
include those provisions, as if they had been expressly included.
new text end

new text begin (d) The written agreement described in paragraph (a) and the contract described in
paragraph (b) must provide that the University of Minnesota is entitled to recover from the
student athlete any attorney fees and expenses incurred by the University of Minnesota in
enforcing its rights under this section in the event of a breach of the provisions required
under paragraphs (a) and (b).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following
final enactment.
new text end