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.

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