S.B. 292 78(R)    BILL ANALYSIS

         
S.B. 292
By: Brimer
Licensing & Administrative Procedures
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

Currently, some athletes are able to receive advice and assistance in
negotiating contracts only from an athlete agent.  There are circumstances
in which a coach's advice could benefit an athlete regarding contract
negotiations and related decision; however, coaches are prohibited from
acting in such a capacity.  
S.B. 292 requires Texas certification before a person can act as an
athlete agent and establishes the application certification requirements
and process, including the requisite fees. 
S.B. 292 also sets forth the grounds for denial of certification as an
athlete agent in Texas. This bill also adds wording to the state's agent
or financial services contract that prohibits waiving the right to cancel
a contract and informs the athlete that signing the contract could result
in irrevocable loss of eligibility in the athlete's sport.  


RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 


ANALYSIS

Amends Section 2051.001(2), Occupations Code, to redefine "athlete." 
Amends Section 2051.002, Occupations Code, to replace a reference to
football or basketball with a reference to intercollegiate sports.  
Amends Subchapter A, Chapter 2051, Occupations Code, by adding Section
2051.006, as follows: Sec. 2051.006. UNIFORMITY OF APPLICATION AND
CONSTRUCTION. Requires that, in applying this chapter, consideration be
paid to the need to promote uniformity of the law among states that have
enacted similar laws.  
Amends Section 2051.101, Occupations Code, as follows: Sec. 2051.101.
REGISTRATION REQUIRED.  
(a) Prohibits a person, except as provided by Subsection (b), from acting
as an athlete agent or representing that the person is an athlete agent in
this state unless the person is registered under this chapter. Deletes
prohibition against certain actions by an athlete agent.  
(b) Authorizes a person to act as an athlete agent for all purposes,
except signing an agent contract, under certain circumstances.  
(c) Creates Subsection (c) out of existing text. Makes a conforming
change.  

Amends Section 2051.102, Occupations Code, as follows: Sec. 2051.102.
APPLICATION REQUIREMENTS.  
(a) Requires an applicant for registration as an athlete agent to apply on
a form prescribed by the secretary of state and adds an exception as
provided by Subsection (e). Makes a nonsubstantive change.  
(b) Adds certain requirements to the list of pieces of information to be
supplied to the secretary  of state. Adds Subsection (5) out of existing
text.  
(c) Decreases the number of professional references required from five to
three. Deletes wording indicating that professional references might not
be required. 
(d) Makes conforming changes. 
(e) Authorizes an athlete agent who is certified or registered in another
state, and seeking certification in this state, to submit a copy of the
previous application and certificate or license in place of the
application required by this section. Requires the secretary of state to
accept the application and certificate or license as an application for
registration in this state under certain circumstances.  

Amends Section 2051.105, Occupations Code, by amending Subsection (b) and
adding Subsections (c) and (d), as follows:  
(b) Authorizes the secretary of state to deny an application for
registration if the secretary determines that the applicant's conduct
significantly adversely affects his or her fitness to act as an athlete
agent. Establishes the criteria the secretary is authorized to consider in
making that determination.  
(c) Requires the secretary of state to consider certain qualifying
criteria in making a determination under Subsection (b).  
(d) Creates Subsection (d) from existing text. Includes Subsection (b)
with Subsection (a) in establishing that judicial review of a denial of an
application for registration under those two subsections is by trial novo
and subject to Section 2001.173, Government Code.  
Amends Section 2051.108, Occupations Code, by amending Subsection (a) and
adding Subsection (e), as follows:  
(a) Makes a conforming change. 
(e) Authorizes a person who has submitted an application for renewal or
registration or licensure as an athlete agent in another state to submit a
copy of the application and certificate of registration or license in
place of the application required by this section. Requires the secretary
of state to accept the application for renewal as an application for
renewal under this section under certain circumstances.  

Amends Section 2051.203, Occupations Code, by amending Subsection (a) and
adding Subsection (d), as follows:  
(a) Includes additional information required to be included in an agent or
financial services contract. Makes nonsubstantive changes.  
(d) Requires the athlete agent to provide the athlete with a signed copy
of the contract at signing.  

Amends Section 2051.204(a), Occupations Code, to include in the required
notice in an agent or financial services contract, the prohibition against
waiving the right to cancel the contract. Establishes that the athlete is
not required to pay or return any consideration if the athlete cancels the
contract within 16 day. Specifies that cancellation of the contract may
not reinstate the athlete's eligibility, should loss of eligibility occur.
Requires the athlete and the agent to notify the athlete's athletic
director, if there is one, within 72 hours after entering into the
contract.  

Amends Section 2051.351(a), Occupations Code, to replace a reference to
football or basketball with a reference to sports and to include certain
prohibitions regarding an athlete agent's professional behavior. Makes
nonsubstantive changes.  

Amends Section 2051.352(a), Occupations Code, to include certain items of
information required to be included and maintained in an athlete agent's
records. Makes nonsubstantive changes.  

Amends Section 2051.402, Occupations Code, by adding Subsection (c) to
establish the secretary  of state as a nonresident athlete agent's agent
for service of process in a civil action related to an act of the person
in the person's professional capacity.  

Amends Section 2051.551, Occupations Code, as follows: Sec. 2051.551.
CIVIL SUIT. (a) Creates Subsection (a) from existing text. Authorizes an
institution of higher education adversely affected by an athlete agent's
or former athlete's violation of this chapter to file suit against the
athlete agent or former athlete for damages.  
(b) Provides that a cause of action under this section does not accrue
until the educational institution discovers, or would have discovered
through reasonable diligence, a violation by an athlete agent or former
athlete.  
(c) Provides that any liability of the athlete agent or former athlete is
several, not joint.  
(d) Provides that this chapter does not restrict the rights, remedies, or
defense of any person under any other law.  
Makes application of this Act prospective. Requires a person whose
application for registration is pending on this Act's effective date to
resubmit the application. Makes application of this Act prospective.  


EFFECTIVE DATE

September 1, 2003