Let Kids Play Act

Protection of Youth Sports Entities: The bill prohibits "vulture practices" that are designed to extract profit while creating long-s term risk of harm to an entity (Section 2, Definition 13).

Elimination of Unfair Fees: The act prohibits the imposition of "junk fees" or hidden charges that are not clearly disclosed or are excessive compared to the cost of providing services (Section 3, subsection b, 4).

Preservation of Competition and Choice: By banning certain exclusivity and non-compete requirements, the bill prevents families and entities from being locked into specific providers or being restricted from participating in competing events (Section 3, subsection b, 5).

Data Privacy and Protection: The bill prohibits covered firms from claiming or transferring intellectual property rights related to athlete biometrics, performance, or family financial data (Section 3, subsection b, 6).

Financial Relief for Communities: If a firm is required to divest, the law allows for remedies such as forgiving debts owed by the youth sports entity, its employees, or participating families (Section 5, subsection c, 3, D).

Funding for Youth Sports Needs: Money collected through disgorgement can be deposited into a "Youth Sports Fund" to reduce participation costs, support free community access, or increase financial aid (Section 8).

Strict Liability for Management: Individuals executing certifications regarding their firm's history are subject to strict liability for material misstatements (Section 4, subsection b, 1).

Heavy Financial Penalties: Firms that submit certifications containing material omissions face civil penalties of not less than $1,000,000 per certification (Section 4, subsection c, 1).

Potential for Criminal Charges: Individuals who knowingly submit false certifications can face fines and up to one year in prison (Section 4, subsection c, 2).

Mandatory Divestiture Burdens: Investors identified as vulture investors are required to undergo a divestiture process, which includes returning ownership of assets and intellectual property (Section 5, subsection a).