AN ACT
1-1 relating to contracts and communications involving certain athletes
1-2 and athlete agents.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subsection (a), Section 1, Chapter 13, Acts of
1-5 the 70th Legislature, 2nd Called Session, 1987 (Article 8871,
1-6 Vernon's Texas Civil Statutes), is amended by amending Subdivision
1-7 (2) and adding Subdivision (6), to read as follows:
1-8 (2) "Athlete agent" means a person that, for
1-9 compensation, directly or indirectly recruits or solicits an
1-10 athlete to enter into an agent contract, professional sports
1-11 services contract, or financial services contract with that person
1-12 or another person, or that for a fee procures, offers, promises, or
1-13 attempts to obtain employment for an athlete with a professional
1-14 sports team.
1-15 (6) "Institution of higher education" means an
1-16 institution of higher education or a private or independent
1-17 institution of higher education as defined by Section 61.003(8) and
1-18 (15), Education Code.
1-19 SECTION 2. Subsection (d), Section 1, Chapter 13, Acts of
1-20 the 70th Legislature, 2nd Called Session, 1987 (Article 8871,
1-21 Vernon's Texas Civil Statutes), is amended to read as follows:
1-22 (d) A person who declares himself eligible for recruitment
1-23 by a professional sports team, thereby becoming ineligible to
2-1 participate in intercollegiate sports contests, [is not an athlete
2-2 under this Act and] may be contacted by an athlete agent [without
2-3 compliance by the agent with the requirements of this Act]. If the
2-4 person later becomes eligible to participate in intercollegiate
2-5 sports, [the person is again considered an athlete under this Act,
2-6 and] any contact with the person by an athlete agent is subject to
2-7 the requirements of this Act.
2-8 SECTION 3. Subsection (a), Section 2, Chapter 13, Acts of
2-9 the 70th Legislature, 2nd Called Session, 1987 (Article 8871,
2-10 Vernon's Texas Civil Statutes), is amended to read as follows:
2-11 (a) An athlete agent may contact an athlete only as provided
2-12 by this Act. The [An] athlete agent must register with the
2-13 secretary of state before the athlete agent may:
2-14 (1) contact an athlete, either directly or indirectly,
2-15 while the athlete is eligible; or
2-16 (2) enter into a contract with an athlete. [A
2-17 registered athlete agent may make those contacts only in accordance
2-18 with this Act.]
2-19 SECTION 4. Section 6, Chapter 13, Acts of the 70th
2-20 Legislature, 2nd Called Session, 1987 (Article 8871, Vernon's Texas
2-21 Civil Statutes), is amended by amending Subsections (b) and (c) and
2-22 adding Subsection (d) to read as follows:
2-23 (b) An athlete agent may not:
2-24 (1) publish or cause to be published any false,
2-25 fraudulent, or misleading information, representation, notice, or
3-1 advertisement or give any false information or make any false
3-2 promises or representations concerning any employment to any
3-3 person;
3-4 (2) divide fees with or receive compensation from a
3-5 person exempt under Section 2A of this Act or a professional sports
3-6 league or franchise or its representative or employee;
3-7 (3) enter into any agreement, written or oral, by
3-8 which the athlete agent offers anything of value to any employee of
3-9 an institution of higher education located in this state in return
3-10 for the referral of any clients by that employee;
3-11 (4) offer anything of value to induce an athlete to
3-12 enter into an agreement by which the athlete agent will represent
3-13 the athlete; or
3-14 (5) except as otherwise provided by this Act, directly
3-15 contact an athlete who is participating in football or basketball
3-16 [to enter into any agreement, written or oral, by which the athlete
3-17 agent will represent the athlete,] until after completion of the
3-18 athlete's last intercollegiate contest and may not enter into an
3-19 oral or written agreement that the athlete agent will represent the
3-20 athlete before the athlete's last intercollegiate contest [that
3-21 purports to take effect at a time after that contest is completed].
3-22 (c) This Act does not prohibit [or limit] an athlete agent
3-23 from sending to an athlete written materials relating to the
3-24 professional credentials of the agent or to specific services
3-25 offered by the agent if the agent simultaneously sends an identical
4-1 copy of the written materials to the athletic director of the
4-2 institution of higher education in which the athlete is enrolled as
4-3 a student or to the athletic director's designee [relating to the
4-4 representation of an athlete in the marketing of an athlete's
4-5 athletic ability or reputation or to the provision of financial
4-6 services by the agent to the athlete].
4-7 (d) This Act does not prohibit an athlete or the athlete's
4-8 parents or[,] legal guardians[, or other advisors] from initiating
4-9 contact with [contacting and interviewing] an athlete agent to
4-10 arrange an interview to determine that agent's professional
4-11 proficiency in the representation of an athlete, in the marketing
4-12 of the athlete's athletic ability or reputation, or the provision
4-13 of financial services by the agent on behalf of the athlete. The
4-14 athlete agent may not discuss the agent's services with an athlete
4-15 or the athlete's parents or legal guardians until after the athlete
4-16 agent has given notice of the proposed discussion to the athletic
4-17 director of the institution of higher education in which the
4-18 athlete is enrolled as a student or to the athletic director's
4-19 designee.
4-20 SECTION 5. Subsection (c), Section 7, Chapter 13, Acts of
4-21 the 70th Legislature, 2nd Called Session, 1987 (Article 8871,
4-22 Vernon's Texas Civil Statutes), is amended to read as follows:
4-23 (c) The athlete agent shall strictly adhere to the specific
4-24 rules of each separate institution with regard to the time, place,
4-25 and duration of the athlete agent interviews. The interviews must
5-1 be conducted during a period of [at least five but] not more than
5-2 30 consecutive business days and, as designated by the institution,
5-3 must be conducted during the off-season [training] period before
5-4 the completion of [for the athlete's sport that precedes] the
5-5 athlete's final year of eligibility.
5-6 SECTION 6. This Act takes effect September 1, 1997.
5-7 SECTION 7. The importance of this legislation and the
5-8 crowded condition of the calendars in both houses create an
5-9 emergency and an imperative public necessity that the
5-10 constitutional rule requiring bills to be read on three several
5-11 days in each house be suspended, and this rule is hereby suspended.
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1190 passed the Senate on
April 17, 1997, by the following vote: Yeas 31, Nays 0; and that
the Senate concurred in House amendments on May 30, 1997, by a
viva-voce vote.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1190 passed the House, with
amendments, on May 28, 1997, by a non-record vote.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor