CA SB1401

Repeals existing law allowing institutions to optionally establish degree completion funds and replaces it with a mandatory requirement for all institutions to establish degree completion funds for each student athlete.

Requires institutions to deposit funds into student athlete degree completion funds by calculating 50% of athletic program revenue for each sport minus grant-in-aid scholarships, then dividing the difference equally among athletes in that sport.

Allows student athletes immediate access to up to $25,000 per academic year from their degree completion fund and entitles them to the remaining balance within 60 days of completing an undergraduate degree within 6 years of enrollment.

Prohibits degree completion fund transfers from creating an employment relationship between student athletes and institutions, and prohibits reduction of athletic scholarships due to degree completion fund deposits.

Addresses fund forfeiture scenarios including failure to complete degree within 6 years, transfer to community college or out-of-state programs, or cessation of athletic participation; provides exception for student athletes with debilitating injuries preventing degree completion.