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.