By Armbrister                                   S.B. No. 1190

      75R5211 MWV-F                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to contracts and communications involving certain athletes

 1-3     and athlete agents.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 1(a)(2), Chapter 13, Acts of the 70th

 1-6     Legislature, 2nd Called Session, 1987 (Article 8871, Vernon's Texas

 1-7     Civil Statutes), is amended 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           SECTION 2.  Section 1(d), Chapter 13, Acts of the 70th

1-16     Legislature, 2nd Called Session, 1987 (Article 8871, Vernon's Texas

1-17     Civil Statutes), is amended to read as follows:

1-18           (d)  A person who declares himself eligible for recruitment

1-19     by a professional sports team, thereby becoming ineligible to

1-20     participate in intercollegiate sports contests, [is not an athlete

1-21     under this Act and] may be contacted by an athlete agent [without

1-22     compliance by the agent with the requirements of this Act].  If the

1-23     person later becomes eligible to participate in intercollegiate

1-24     sports, [the person is again considered an athlete under this Act,

 2-1     and] any contact with the person by an athlete agent is subject to

 2-2     the requirements of this Act.

 2-3           SECTION 3.  Section 2(a), Chapter 13, Acts of the 70th

 2-4     Legislature, 2nd Called Session, 1987 (Article 8871, Vernon's Texas

 2-5     Civil Statutes), is amended to read as follows:

 2-6           (a)  An athlete agent may contact an athlete only as provided

 2-7     by this Act.  The [An] athlete agent must register with the

 2-8     secretary of state before the athlete agent may:

 2-9                 (1)  contact an athlete, either directly or indirectly,

2-10     while the athlete is eligible; or

2-11                 (2)  enter into a contract with an athlete.  [A

2-12     registered athlete agent may make those contacts only in accordance

2-13     with this Act.]

2-14           SECTION 4.  Section 6, Chapter 13, Acts of the 70th

2-15     Legislature, 2nd Called Session, 1987 (Article 8871, Vernon's Texas

2-16     Civil Statutes), is amended by amending Subsections (b) and (c) and

2-17     adding Subsection (d) to read as follows:

2-18           (b)  An athlete agent may not:

2-19                 (1)  publish or cause to be published any false,

2-20     fraudulent, or misleading information, representation, notice, or

2-21     advertisement or give any false information or make any false

2-22     promises or representations concerning any employment to any

2-23     person;

2-24                 (2)  divide fees with or receive compensation from a

2-25     person exempt under Section 2A of this Act or a professional sports

2-26     league or franchise or its representative or employee;

2-27                 (3)  enter into any agreement, written or oral, by

 3-1     which the athlete agent offers anything of value to any employee of

 3-2     an institution of higher education located in this state in return

 3-3     for the referral of any clients by that employee;

 3-4                 (4)  offer anything of value to induce an athlete to

 3-5     enter into an agreement by which the athlete agent will represent

 3-6     the athlete; or

 3-7                 (5)  except as otherwise provided by this Act, directly

 3-8     contact an athlete who is participating in football or basketball

 3-9     [to enter into any agreement, written or oral, by which the athlete

3-10     agent will represent the athlete,] until after completion of the

3-11     athlete's last intercollegiate contest and may not enter into an

3-12     oral or written agreement that the athlete agent will represent the

3-13     athlete before the athlete's last intercollegiate contest [that

3-14     purports to take effect at a time after that contest is completed].

3-15           (c)  This Act does not prohibit or limit an athlete agent

3-16     from simultaneously sending [to an athlete] written materials

3-17     relating to the professional credentials of the agent or to

3-18     specific services offered by the agent relating to the

3-19     representation of an athlete in the marketing of an athlete's

3-20     athletic ability or reputation or to the provision of financial

3-21     services by the agent to both the athlete and the athletic director

3-22     of the institution of higher education in which the athlete is

3-23     enrolled as a student or to the athletic director's designee.

3-24           (d)  This Act does not prohibit an athlete or the athlete's

3-25     parents, legal guardians, or other advisors from contacting [and

3-26     interviewing] an  athlete agent to arrange an interview to

3-27     determine that agent's professional proficiency in the

 4-1     representation of an athlete, in the marketing of the athlete's

 4-2     athletic ability or reputation, or the provision of financial

 4-3     services by the agent on behalf of the athlete.  The athlete agent

 4-4     may not discuss the agent's services with an athlete or the

 4-5     athlete's parents, legal guardians, or other advisors until after

 4-6     the athlete agent has given notice of the proposed discussion to

 4-7     the athletic director of the institution of higher education in

 4-8     which the athlete is enrolled as a student or to the athletic

 4-9     director's designee.

4-10           SECTION 5.  This Act takes effect September 1, 1997.

4-11           SECTION 6.  The importance of this legislation and the

4-12     crowded condition of the calendars in both houses create an

4-13     emergency and an imperative public necessity that the

4-14     constitutional rule requiring bills to be read on three several

4-15     days in each house be suspended, and this rule is hereby suspended.