1-1 By: Armbrister S.B. No. 1190
1-2 (In the Senate - Filed March 11, 1997; March 17, 1997, read
1-3 first time and referred to Committee on State Affairs;
1-4 April 4, 1997, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 11, Nays 0; April 4, 1997,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 1190 By: Armbrister
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to contracts and communications involving certain athletes
1-11 and athlete agents.
1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13 SECTION 1. Subdivision (2), Subsection (a), Section 1,
1-14 Chapter 13, Acts of the 70th Legislature, 2nd Called Session, 1987
1-15 (Article 8871, Vernon's Texas Civil Statutes), is amended to read
1-16 as follows:
1-17 (2) "Athlete agent" means a person that, for
1-18 compensation, directly or indirectly recruits or solicits an
1-19 athlete to enter into an agent contract, professional sports
1-20 services contract, or financial services contract with that person
1-21 or another person, or that for a fee procures, offers, promises, or
1-22 attempts to obtain employment for an athlete with a professional
1-23 sports team.
1-24 SECTION 2. Subsection (d), Section 1, Chapter 13, Acts of
1-25 the 70th Legislature, 2nd Called Session, 1987 (Article 8871,
1-26 Vernon's Texas Civil Statutes), is amended to read as follows:
1-27 (d) A person who declares himself eligible for recruitment
1-28 by a professional sports team, thereby becoming ineligible to
1-29 participate in intercollegiate sports contests, [is not an athlete
1-30 under this Act and] may be contacted by an athlete agent [without
1-31 compliance by the agent with the requirements of this Act]. If the
1-32 person later becomes eligible to participate in intercollegiate
1-33 sports, [the person is again considered an athlete under this Act,
1-34 and] any contact with the person by an athlete agent is subject to
1-35 the requirements of this Act.
1-36 SECTION 3. Subsection (a), Section 2, Chapter 13, Acts of
1-37 the 70th Legislature, 2nd Called Session, 1987 (Article 8871,
1-38 Vernon's Texas Civil Statutes), is amended to read as follows:
1-39 (a) An athlete agent may contact an athlete only as provided
1-40 by this Act. The [An] athlete agent must register with the
1-41 secretary of state before the athlete agent may:
1-42 (1) contact an athlete, either directly or indirectly,
1-43 while the athlete is eligible; or
1-44 (2) enter into a contract with an athlete. [A
1-45 registered athlete agent may make those contacts only in accordance
1-46 with this Act.]
1-47 SECTION 4. Section 6, Chapter 13, Acts of the 70th
1-48 Legislature, 2nd Called Session, 1987 (Article 8871, Vernon's Texas
1-49 Civil Statutes), is amended by amending Subsections (b) and (c) and
1-50 adding Subsection (d) to read as follows:
1-51 (b) An athlete agent may not:
1-52 (1) publish or cause to be published any false,
1-53 fraudulent, or misleading information, representation, notice, or
1-54 advertisement or give any false information or make any false
1-55 promises or representations concerning any employment to any
1-56 person;
1-57 (2) divide fees with or receive compensation from a
1-58 person exempt under Section 2A of this Act or a professional sports
1-59 league or franchise or its representative or employee;
1-60 (3) enter into any agreement, written or oral, by
1-61 which the athlete agent offers anything of value to any employee of
1-62 an institution of higher education located in this state in return
1-63 for the referral of any clients by that employee;
1-64 (4) offer anything of value to induce an athlete to
2-1 enter into an agreement by which the athlete agent will represent
2-2 the athlete; or
2-3 (5) except as otherwise provided by this Act, directly
2-4 contact an athlete who is participating in football or basketball
2-5 [to enter into any agreement, written or oral, by which the athlete
2-6 agent will represent the athlete,] until after completion of the
2-7 athlete's last intercollegiate contest and may not enter into an
2-8 oral or written agreement that the athlete agent will represent the
2-9 athlete before the athlete's last intercollegiate contest [that
2-10 purports to take effect at a time after that contest is completed].
2-11 (c) This Act does not prohibit [or limit] an athlete agent
2-12 from sending to an athlete written materials relating to the
2-13 professional credentials of the agent or to specific services
2-14 offered by the agent if the agent simultaneously sends an identical
2-15 copy of the written materials to the athletic director of the
2-16 institution of higher education in which the athlete is enrolled as
2-17 a student or to the athletic director's designee [relating to the
2-18 representation of an athlete in the marketing of an athlete's
2-19 athletic ability or reputation or to the provision of financial
2-20 services by the agent to the athlete].
2-21 (d) This Act does not prohibit an athlete or the athlete's
2-22 parents or[,] legal guardians[, or other advisors] from initiating
2-23 contact with [contacting and interviewing] an athlete agent to
2-24 arrange an interview to determine that agent's professional
2-25 proficiency in the representation of an athlete, in the marketing
2-26 of the athlete's athletic ability or reputation, or the provision
2-27 of financial services by the agent on behalf of the athlete. The
2-28 athlete agent may not discuss the agent's services with an athlete
2-29 or the athlete's parents or legal guardians until after the athlete
2-30 agent has given notice of the proposed discussion to the athletic
2-31 director of the institution of higher education in which the
2-32 athlete is enrolled as a student or to the athletic director's
2-33 designee.
2-34 SECTION 5. This Act takes effect September 1, 1997.
2-35 SECTION 6. The importance of this legislation and the
2-36 crowded condition of the calendars in both houses create an
2-37 emergency and an imperative public necessity that the
2-38 constitutional rule requiring bills to be read on three several
2-39 days in each house be suspended, and this rule is hereby suspended.
2-40 * * * * *