Let Kids Play Act
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed House
- To President
- Became Law
Overview
The Let Kids Play Act prohibits private equity firms, often referred to as ‘vulture investors,’ from investing in youth sports organizations. It defines specific practices, such as consolidating control, imposing excessive fees, and restricting participant choices, as ‘vulture practices.’ The bill aims to protect youth sports entities from financial exploitation and ensure fair access for participants. It establishes a process for designating investors as ‘vulture investors’ and outlines remedies, including divestiture and financial penalties.
Key provisions
- Prohibits ‘vulture investors’ from investing in youth sports entities.
- Defines ‘vulture practices’ related to investment and operations in youth sports.
- Establishes a process for designating covered firms as ‘vulture investors’ through certification or presumption.
- Requires divestiture of investments by designated ‘vulture investors’ within two years.
- Allows for civil penalties and criminal charges for false certifications.
- Creates a ‘Youth Sports Fund’ to redistribute funds from penalties and divestitures.
- Addresses pre-dispute arbitration agreements and joint action waivers to prevent evasion of the Act’s provisions.
- Establishes joint and several liability for ‘vulture investors’ regarding debts and liabilities of youth sports entities.
Who is affected
- Private equity firms (covered firms)
- Youth sports organizations (youth sports entities)
Bill text
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Sponsors
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4 on record
Primary sponsor
Cosponsors
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