S. 4522

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4522 Introduced in Senate (IS)]

<DOC>

119th CONGRESS
2d Session
S. 4522

To prohibit vulture investors from investing in youth sports, and for 
other purposes.

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

May 13, 2026

Mr. Murphy (for himself and Mr. Booker) introduced the following bill; 
which was read twice and referred to the Committee on Banking, Housing, 
and Urban Affairs

_______________________________________________________________________

A BILL

To prohibit vulture investors from investing in youth sports, and for 
other purposes.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Let Kids Play Act''.

SEC. 2. DEFINITIONS.

In this Act:
(1) Acquired entity.--The term ``acquired entity'' means 
any company or organization in which a covered firm, directly 
or indirectly, holds an ownership interest, maintains a 
management or operational control agreement, or exercises 
control.
(2) Affiliate.--The term ``affiliate'' means an entity that 
controls, is controlled by, or is under common control with 
another entity.
(3) Assistant attorney general.--The term ``Assistant 
Attorney General'' means the Assistant Attorney General for the 
Antitrust Division of the United States Department of Justice.
(4) Capital distribution.--The term ``capital 
distribution'' means--
(A) a cash or share dividend;
(B) a share repurchase;
(C) a share redemption; or
(D) a share buyback.
(5) Commission.--The term ``Commission'' means the Federal 
Trade Commission.
(6) Company.--The term ``company'' has the meaning given 
the term in section 2 of the Investment Company Act of 1940 (15 
U.S.C. 80a-2).
(7) Control.--The term ``control'' has the meaning given 
the term in section 2 of the Investment Company Act of 1940 (15 
U.S.C. 80a-2).
(8) Covered firm.--The term ``covered firm'' means--
(A) a private equity fund; or
(B) a company that is owned or controlled by a 
private equity fund.
(9) Invest.--The term ``invest'' means to own, operate, 
control, manage, or otherwise direct the operation of the whole 
or any part of an entity or facility, including by entering 
into a management agreement or operational control agreement 
with an entity or facility.
(10) Operational control agreement.--The term ``operational 
control agreement'' means any formal or informal contract, 
agreement, or understanding, whether written or oral (including 
a limited partnership agreement, side letter, or any agreement 
between or among investors) through which a covered firm 
obtains the authority to influence or determine key operational 
decisions of a youth sports facility, or where such authority 
is contractually delegated to the private equity fund by other 
investors or parties, including decisions relating to--
(A) staffing and personnel;
(B) scheduling and programming;
(C) budgeting and financial management;
(D) use and maintenance of athletic facilities; or
(E) terms of participation or membership.
(11) Private equity fund.--The term ``private equity fund'' 
means a person who--
(A) would be an investment company, as defined in 
the Investment Company Act of 1940, but for paragraphs 
(1) or (7) of section 3(c) of that Act (15 U.S.C. 80a-
3); and
(B) directly, or through an affiliate, exercises 
control of such company.
(12) Vulture investor.--The term ``vulture investor'' means 
any covered firm that--
(A) engages, or has previously engaged, in vulture 
practices with respect to an entity that was an 
acquired entity at the time of such engagement; or
(B) has had 2 or more acquired entities become 
financially insolvent or enter bankruptcy proceedings 
within 5 years of acquisition.
(13) Vulture practice.--The term ``vulture practice'' means 
any practice, term, condition, tactic, instrument, method, or 
act that causes harm or creates long-term risk of harm to an 
acquired entity in order to extract profit, assets, or other 
value for the benefit of a covered firm or its affiliates, 
including--
(A) imposing any debt on an acquired entity to 
generate profit, finance the acquisition or other 
business activity, or otherwise create value for a 
covered firm;
(B) transferring to a covered firm the ownership or 
control of an acquired entity's assets or rights to the 
intellectual property or data generated by an acquired 
entity;
(C) shielding a covered firm from liability for 
legal infractions or financial obligations it benefits 
from or directly or indirectly causes;
(D) employing roll-up strategies through serial 
acquisitions or investments to consolidate control over 
local providers, including by acquiring, controlling, 
managing, financing, advising, or exercising governance 
rights;
(E) converting an acquired entity into a high-risk, 
high-margin business by increasing prices, adding junk 
fees, reducing quality or safety, cutting jobs, wages, 
or benefits, or otherwise degrading operations to 
maximize profit;
(F) imposing operational costs on an acquired 
entity such as management fees, leases for seized 
assets, capital distribution, or other burdensome or 
unnecessary charges; or
(G) imposing one-sided terms on an acquired entity, 
or its customers, workers, clients, buyers, or others 
that lock them into exclusive dealings with entities 
controlled by the covered firm, or that otherwise 
exploit or restrict choice.
(14) Youth sports.--The term ``youth sports'' means any 
organization, asset, service, or activity associated with 
organized athletic participation, instruction, or competition 
for individuals under the age of 18, including the following:
(A) All leagues, clubs, associations, and teams at 
the recreational, travel, and elite levels.
(B) All youth sports facilities, physical assets, 
and infrastructure.
(C) All associated technology and intellectual 
property, including registration platforms, scheduling 
software, scoring systems, proprietary training 
methods, performance metric technology, and related 
data collection and algorithms.
(D) All youth sports training camps, tournaments, 
and showcases.
(E) All nonprofit and for-profit entities that 
provide or facilitate any aspect of the activities 
described in subparagraphs (A) through (D).
(15) Youth sports entity.--The term ``youth sports entity'' 
means any person, company, partnership, corporation, 
association, affiliate, or organization (whether for-profit or 
nonprofit) that provides, operates, manages, or facilitates 
youth sports.
(16) Youth sports facility.--The term ``youth sports 
facility'' means a field, court, stadium, sports complex, 
gymnasium, or similar athletic facility that is used for 
recreational, competitive sporting activities or to provide 
ancillary services for participants under the age of 18, 
including as a part of a school-sponsored team, recreational 
league, or community-based program.
(17) Youth sports fund.--The term ``Youth Sports Fund'' 
means the fund established under section 8.

SEC. 3. PROHIBITION ON VULTURE INVESTMENT IN YOUTH SPORTS.

(a) Vulture Investor Prohibition.--It shall be unlawful for any 
vulture investor to invest in a youth sports entity.
(b) Vulture Practice Prohibition.--It shall be unlawful for any 
covered firm to engage in vulture practices in connection with 
investment in a youth sports entity, including by doing any of the 
following:
(1) Consolidating control over youth sports by rolling up 
multiple youth sports entities, or acquiring, controlling, 
managing, financing, advising, exercising governance rights 
for, or investing in more than 1 entity that--
(A) exclusively serves multiple youth sports 
entities; or
(B) supplies products or services that are 
essential or mandatory for participation in youth 
sports.
(2) Creating an integrated network of activities, services, 
partnerships, tournaments, apparel, or tech platforms, where 
participation in one requires, directly or indirectly, the use 
of others owned or controlled by the covered firm or offered by 
a third-party partner of the covered firm.
(3) Conditioning eligibility to participate in any aspect 
of youth sports on the use of a designated travel agent, hotel 
or lodging accommodation, or transportation entity.
(4) Imposing junk fees or other hidden or unfair charges in 
connection with youth sports participation, including any fee 
or additional cost that--
(A) is not clearly and conspicuously disclosed 
before a youth registers, commits, or makes a payment 
to participate in youth sports, including any late-
stage fee added after an initial price is presented or 
paid;
(B) is mandatory or effectively unavoidable as a 
condition of participation after a youth registers, 
commits, or makes a payment;
(C) penalizes a youth participant or family for 
declining to purchase goods or services;
(D) is unnecessary such that it incurs nominal or 
no cost to provide;
(E) is excessive such that it is disproportional to 
the cost to provide; or
(F) duplicates, overlaps with, or is bundled with 
other fees or charges such that the cost is obscured or 
incurred more than once for the same or similar goods 
or services.
(5) Imposing any of the following terms:
(A) Exclusivity, non-compete, or right of first 
refusal requirements that directly or indirectly limit 
activities, services, partnerships, tournaments, 
apparel, or tech platforms in youth sports to those 
controlled or owned by the covered firm or their third-
party partners.
(B) Multi-year, non-cancelable commitments binding 
youth sports participants or entities for 2 or more 
seasons without early termination rights.
(C) Bans or restrictions, direct or indirect, on 
participating in competing tournaments or other non-
affiliated athletic events offering within 150 miles.
(D) Bans or restrictions, direct or indirect, on 
using competing tech platforms, including non-
affiliated scheduling, registration, or analytics 
tools.
(6) Claiming, securing, transferring, or licensing by or to 
a covered firm, an entity affiliated with or controlled by a 
covered firm, or any third party unaffiliated with youth 
sports, the intellectual property rights to any of the 
following:
(A) Record, broadcast, report, attend, portray, 
share, or otherwise capture any aspect of youth sports.
(B) Any athlete biometric, performance, or family 
financial data, including but not limited to heart 
rate, global positioning system tracking, injury 
history, scouting reports, or parental payment records.
(C) Any technology or algorithms, including 
software, models, or predictive systems developed in 
connection with any aspect of youth sports.
(7) Violating any provision of the Protecting Young Victims 
from Sexual Abuse and Safe Sport Authorization Act of 2017 (36 
U.S.C. 220541 et seq.).
(8) Engaging in any other practice, term, condition, 
tactic, instrument, method, or act that the Commission or 
Assistant Attorney General has determined to be a vulture 
practice and has published notice thereof in the Federal 
Register without regard to the requirements under section 553 
of title 5, United States Code.

SEC. 4. VULTURE INVESTOR DESIGNATION.

(a) Designation.--
(1) Presumptive designation for existing investment as of 
the date of enactment of this act.--Any covered firm that is 
invested in a youth sports entity as of the date of enactment 
of this Act shall be presumed to be a vulture investor for all 
purposes under this Act.
(2) Automatic designation for existing investment after the 
date of enactment of this act.--Any covered firm that is 
invested in a youth sports entity as of the date of enactment 
of this Act shall be automatically designated as a vulture 
investor 91 days after the date of enactment of this Act unless 
certified under subsection (b).
(3) Designation for prospective investment after the date 
of enactment of this act.--A covered firm that is seeking to 
invest in a youth sports entity on or after the date of 
enactment of this Act shall be designated a vulture investor 
for all purposes under this Act and shall not initiate or 
proceed with any such investment unless and until certified 
under subsection (b).
(b) Certification.--
(1) Requirements.--A covered firm may rebut the designation 
under subsection (a) only by submitting to the Commission a 
sworn certification, executed under penalty of perjury and 
subject to strict liability for any material misstatement or 
omission, by each general partner or equivalent individual with 
management authority over the covered firm, attesting that--
(A) the covered firm and any affiliate, 
predecessor, successor, or entity under common control 
has never engaged in a vulture practice;
(B) not more than 1 acquired entity of the covered 
firm, including all affiliated or commonly controlled 
entities, has become financially insolvent or entered 
bankruptcy proceedings within 5 years of acquisition; 
and
(C) the covered firm will not engage in any vulture 
practice at any time.
(2) Timing of certification submission.--
(A) Covered firms invested as of the date of 
enactment of this act.--Not later than 60 days after 
the date of enactment of this Act, a covered firm 
invested in a youth sports entity as of the date of 
enactment of this Act may submit a certification under 
paragraph (1).
(B) Covered firms seeking to invest after the date 
of enactment of this act.--A covered firm seeking to 
invest in a youth sports entity after the date of 
enactment of this Act shall submit a certification 
under paragraph (1) not less than 60 days prior to 
initiating such investment.
(3) Effect on operations.--A certification under paragraph 
(1) shall have no force or effect unless and until approved by 
the Commission, and no certification submission, pendency, or 
review shall stay, delay, or otherwise affect any designation 
or obligation under this Act.
(4) Disposition of certification.--Any certification under 
paragraph (1) not approved on or before the date that is 31 
days after the date of submission shall be deemed denied by 
operation of law.
(5) Termination of certification.--The Commission or the 
Assistant Attorney General may terminate a certification at any 
time by notifying the covered firm and publishing a notice in 
the Federal Register, and, effective on the date of 
publication, the covered firm shall be automatically designated 
as a vulture investor for the purposes of this Act.
(c) False Certification.--
(1) Civil penalty.--Any covered firm that submits a 
certification under subsection (b) that contains a material 
misstatement or omission shall be liable for a civil penalty of 
not less than $1,000,000 per certification, which shall--
(A) be assessed separately for each false 
certification submitted under subsection (b);
(B) be imposed jointly and severally on the covered 
firm and each individual who executes such 
certification, including each general partner or 
equivalent individual with management authority over 
the covered firm, without right of indemnification, 
reimbursement, insurance, or contribution from any 
covered firm, affiliate, or other person, and any 
agreement to the contrary shall be void as against 
public policy;
(C) apply by operation of law upon submission of 
such certification and may be enforced by the 
Commission or the Assistant Attorney General; and
(D) be deposited into the Youth Sports Fund.
(2) Criminal liability.--Any individual who knowingly or 
willfully executes or submits a certification under subsection 
(b) that contains a material misstatement or omission shall be 
fined under title 18, United States Code, imprisoned for not 
more than 1 year, or both, and may be prosecuted under this 
subsection, section 1001 of title 18, United States Code, or 
both.
(d) Limitation on Review.--Any determination by the Commission or 
the Assistant Attorney General under this section, including the 
approval, denial, or termination of a certification, shall not stay, 
enjoin, or otherwise delay the application of any requirement under 
this Act, including through temporary restraining order, preliminary 
injunction, or other equitable relief.

SEC. 5. DIVESTITURE AND REMEDIES.

(a) Divestiture.--Not later than 2 years after the date of 
enactment of this Act or after designation as a vulture investor, a 
vulture investor shall cure any violation of this Act by--
(1) divesting or unwinding any ownership stakes, 
acquisitions, rights, agreements, contracts, terms, and 
exclusivity arrangements related to the ownership, operation, 
control, management, or other direction of any youth sports 
entity;
(2) returning, transferring, or assigning ownership of all 
assets, real estate, and intellectual property, including 
trademarks, copyrights, patents, and related rights acquired by 
a vulture investor from a youth sports entity or generated by 
its activities, or, in the event of a non-reversible sale of a 
physical asset or real estate to an unaffiliated third party, 
the vulture investor shall pay the youth sports entity the full 
proceeds the vulture investor received from the sale or the 
market value at the time of sale, whichever is higher; and
(3) at the time of designation as a vulture investor, 
removing any individuals installed by the vulture investor from 
any management, senior executive, or board position within any 
youth sports entity.
(b) Divestiture Process.--
(1) Guidance.--Not later than 30 days after the date of 
enactment of this Act, the Chair of the Commission shall issue 
guidance specifying milestones for divestment within the 
deadline established under subsection (a) by publishing notice 
thereof in the Federal Register without regard to the 
provisions under section 553 of title 5, United States Code.
(2) Penalties for failure to comply.--For any entity 
subject to divestiture under subsection (a) that does not 
comply with the milestones specified under paragraph (1), 
except in cases in which divestiture is blocked under paragraph 
(5), the Chair of the Commission or the Assistant Attorney 
General shall cause 10 percent of all revenue received by the 
vulture investor attributable to the youth sports entity to be 
transferred into escrow on a monthly basis, which shall be--
(A) returned to the vulture investor if divestment 
occurs by the deadline under subsection (a); or
(B) deposited into the Youth Sports Fund if 
divestment does not occur by the deadline under 
subsection (a).
(3) Reporting period.--Any divestment required under 
subsection (a) shall be reported to the Commission and the 
Assistant Attorney General under section 7A of the Clayton Act 
(15 U.S.C. 18a) without respect to the thresholds under 
subsection (a)(2) of that section.
(4) Review of divestiture.--With respect to each 
divestiture undertaken pursuant to subsection (a), in addition 
to any applicable review under section 7A of the Clayton Act 
(15 U.S.C. 18a), the Commission and the Assistant Attorney 
General shall review the effect on competition, financial 
viability, and the public interest--
(A) of the divestiture; and
(B) of the subsequent acquisition of the divested 
entity by the acquiring person.
(5) Blocking divestiture.--The Commission and the Assistant 
Attorney General, jointly or separately, may bring a civil 
action in any court of competent jurisdiction to block any 
divestiture that would constitute a violation of this Act or 
harm competition, result in financial insolvency, or result in 
a conflict of interest to the detriment of the public interest.
(6) Trustee.--If divestiture does not occur by the 
divestiture deadline under subsection (a), a divestiture 
trustee appointed by the Chair of the Commission or the 
Assistant Attorney General and paid for in full by the vulture 
investor subject to divestiture shall oversee the required 
divestiture and shall have the authority to sell the youth 
sports entity to which the divestiture requirement applies.
(c) Remedies in Connection With Divestiture.--
(1) In general.--As a condition of or in connection with 
any divestiture under this section, the Commission or the 
Assistant Attorney General may impose, require, supervise, and 
enforce such restrictions and remedies as are necessary to 
cure, mitigate, or prevent any violation of this Act.
(2) Divestiture compliance.--No divestiture required under 
this section shall be considered complete or in compliance with 
this Act unless and until the Commission or the Assistant 
Attorney General determines that all such remedies have been 
satisfied.
(3) Types of remedies.--The Commission or the Assistant 
Attorney General may require a vulture investor to--
(A) cease and desist from any violation of this 
Act;
(B) disgorge any revenue, fees, special dividends, 
or other forms of profit extracted from a youth sports 
entity through vulture practices, including any pre-
judgment and post-judgment interest;
(C) refund all junk fees charged directly or 
indirectly to customers;
(D) forgive and void in full any debts or 
outstanding payments owed by the youth sports entity, 
the local community, and any employees, families, 
participants, or customers that were related to or 
resulted from vulture practices under this Act;
(E) fund any scholarship or financial aid programs 
that existed at the acquisition, including during the 
1-year period before the date of acquisition, at the 
pre-acquisition funding level for a minimum period of 5 
years;
(F) pay the youth sports entity any proceeds the 
vulture investor received from leasing, licensing, or 
granting access rights to any asset, real estate, or 
intellectual property the youth sports entity owned, 
controlled, generated, procured, or paid for prior to 
or during the period of investment;
(G) transfer all data, algorithms, software, 
licenses, platforms, and other technology necessary to 
operate the business effectively to the youth sports 
entity, and relinquish any past, present, or future 
ownership or rights thereto;
(H) disgorge or delete any proprietary customer, 
participant, or operational data acquired or collected 
during the period of investment, as directed by the 
Commission or the Assistant Attorney General;
(I) compensate for any asset transfers or 
transactions that diminished the value or viability of 
the youth sports entity; and
(J) provide any other relief necessary to restore 
the financial viability, operational independence, and 
competitive position of the youth sports entity.
(d) Post-divestiture Jurisdiction.--The Commission and the 
Assistant Attorney General shall retain jurisdiction for a period of 
not less than 1 year following the completion of any divestiture under 
this section to--
(1) monitor compliance with this Act and any conditions or 
remedies imposed under this subsection;
(2) impose additional conditions or remedies as necessary;
(3) modify or terminate previously imposed conditions or 
remedies; and
(4) require additional transfers, payments, or operational 
changes to ensure compliance with this Act and the 
effectiveness of the divestiture.
(e) Administrative Authority.--
(1) In general.--The authority under this section may be 
exercised without any requirement to prove a violation in court 
and may be based on designation as a vulture investor or a 
failure to obtain or maintain certification under section 4, or 
the application of this section.
(2) Orders.--The Commission or the Assistant Attorney 
General may issue such orders as are necessary to carry out 
this section, including orders requiring compliance with any 
condition or remedy imposed under this subsection.
(3) Escrow.--The Commission or the Assistant Attorney 
General may require that funds, proceeds, or other assets be 
placed in escrow or otherwise withheld pending satisfaction of 
the divestiture, or any condition or remedy imposed under this 
section.

SEC. 6. ENFORCEMENT.

(a) In General.--The Commission or the Assistant Attorney General 
may enforce this Act, including any divestiture, condition, 
restriction, or remedy imposed under section 5, by--
(1) exercising the administrative authorities provided 
under this Act; or
(2) bringing a civil action in an appropriate district 
court of the United States.
(b) Powers of the Commission.--
(1) In general.--The Commission shall enforce this Act or 
an order, requirement, guidance, rule, process, or procedure 
authorized under this Act in the same manner, by the same 
means, and with the same jurisdiction, powers, and duties as 
though all applicable terms and provisions of the Federal Trade 
Commission Act (15 U.S.C. 41 et seq.) were incorporated into 
and made a part of this Act.
(2) Unfair or deceptive acts or practices; unfair methods 
of competition.--A violation of this Act or an order, 
requirement, guidance, rule, process, or procedure authorized 
by this Act shall also constitute a violation of section 5(a) 
of the Federal Trade Commission Act (15 U.S.C. 45(a)) regarding 
unfair methods of competition or a rule defining an unfair or 
deceptive act or practice under section 18(a)(1)(B) of the 
Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)).
(3) Privileges and immunities.--Any person who violates 
this Act or an order, requirement, guidance, rule, process, or 
procedure authorized by this Act shall be subject to the 
penalties and entitled to the privileges and immunities 
provided in the Federal Trade Commission Act (15 U.S.C. 41 et 
seq.).
(c) Actions by State Attorneys General.--
(1) In general.--If the attorney general of a State has 
reason to believe that an interest of the residents of the 
State has been or is being threatened or adversely affected by 
a practice that violates this section, the attorney general of 
the State may, as parens patriae, bring a civil action on 
behalf of the residents of the State in an appropriate district 
court of the United States.
(2) Rule of construction.--For purposes of bringing a civil 
action under this subsection, nothing in this Act shall be 
construed to prevent an attorney general, official, or agency 
of a State from exercising the powers conferred on the attorney 
general, official, or agency by the laws of such State to 
conduct investigations, administer oaths and affirmations, or 
compel the attendance of witnesses or the production of 
documentary and other evidence.
(d) Private Right of Action.--Any individual or class of 
individuals adversely affected by a covered firm's violation of this 
Act, or a regulation promulgated thereunder, may bring a civil action 
in any court of competent jurisdiction against the covered firm.
(e) Award.--In a civil action brought under this Act in which the 
plaintiff prevails, the court may award--
(1) damages in an amount equal to--
(A) 3 times the amount of actual monetary damages 
incurred as a result of the violation; or
(B) in the event of a willful violation, an amount 
determined appropriate by the court, but in no case 
shall such amount be less than the amount described in 
subparagraph (A);
(2) restitution or other appropriate equitable relief;
(3) reasonable attorney's fees and litigation costs;
(4) any condition, restriction, or remedy described in 
section 5; and
(5) any other relief that the court determines appropriate.
(f) Right to Jury Trial.--Either party, upon request, shall have 
the right to a jury trial.
(g) Invalidity of Pre-dispute Arbitration Agreements and Pre-
dispute Joint Action Waivers.--
(1) Definitions.--For purposes of this subsection:
(A) Pre-dispute arbitration agreement.--The term 
``pre-dispute arbitration agreement'' means any 
agreement to arbitrate a dispute that has not arisen at 
the time of the making of the agreement.
(B) Pre-dispute joint-action waiver.--The term 
``pre-dispute joint-action waiver'' means an agreement, 
whether or not part of a pre-dispute arbitration 
agreement, that would prohibit or waive the right of 1 
of the parties to the agreement to participate in a 
joint, class, or collective action in a judicial, 
arbitral, administrative, or other related forum, 
concerning a dispute that has not yet arisen at the 
time of the making of the agreement.
(2) Invalidity.--Notwithstanding any other provision of 
law, no pre-dispute arbitration agreement or pre-dispute joint 
action waiver shall be valid or enforceable with regard to a 
dispute arising under this Act.
(3) Applicability.--Any determination as to whether or how 
this subsection applies to any dispute shall be made by a 
court, rather than an arbitrator, without respect to whether 
such agreement purports to delegate such determination to an 
arbitrator.

SEC. 7. JOINT AND SEVERAL LIABILITY.

Notwithstanding any other provision of law, or the terms of any 
contract or agreement, a vulture investor, including any control person 
or affiliate, shall be held jointly and severally liable with the youth 
sports entity for all liabilities incurred by the youth sports entity 
during the period of the vulture investor's control, including--
(1) all debt obligations assumed by the youth sports 
entity;
(2) legal judgments;
(3) pension-related obligations; and
(4) any legal, regulatory, or safety infractions including, 
but not limited to, child safety, labor violations, and 
facility code failures.

SEC. 8. YOUTH SPORTS FUND.

Any money disgorged pursuant to an action under this Act without a 
specified recipient shall be deposited in a youth sports fund created 
and distributed under terms set by the Commission to be put to use in 
the interest of serving the youth sports needs of the harmed community 
or communities, including by--
(1) providing funds to youth sports entities to reduce or 
eliminate participation costs for families;
(2) supporting free community access to youth sports 
facilities;
(3) increasing financial aid or scholarships; or
(4) otherwise providing any necessary funding to ensure a 
divested youth sports entity can operate at a safe and 
effective level.

SEC. 9. AUTHORITY TO IMPLEMENT THIS ACT.

The Commission shall have the authority to issue orders, 
requirements, guidance, rules, processes, or procedures necessary to 
implement this Act by publishing notice thereof in the Federal Register 
without regard to the provisions under section 553 of title 5, United 
States Code.

SEC. 10. PREEMPTION.

Nothing in this Act shall be construed to restrict or preempt any 
State or local law that--
(a) provides protection against vulture practices or a covered 
firm that are greater than those set forth in this Act;
(b) imposes civil or criminal sanctions or penalties greater than 
those imposed by this Act; or
(c) creates any public or private right of action relating to 
vulture practices or a covered firm.

SEC. 11. ANTI-EVASION.

(a) In General.--It shall be unlawful for any person to structure, 
restructure, or otherwise arrange any transaction, relationship, or 
agreement for the purpose of evading the requirements of this Act.
(b) Substance Over Form.--For purposes of determining compliance 
with this Act, the Commission and the Assistant Attorney General may 
disregard the form of any transaction and consider its substance.
(c) Treatment as a Covered Firm.--Any entity created, reorganized, 
or utilized for the purpose of avoiding designation under this Act 
shall be deemed to be a covered firm.
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