78R3330 YDB-D
By: Brimer S.B. No. 292
A BILL TO BE ENTITLED
AN ACT
relating to the regulation of athlete agents.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 2051, Occupations Code, is
amended by adding Section 2051.006 to read as follows:
Sec. 2051.006. UNIFORMITY OF APPLICATION AND CONSTRUCTION.
In applying this chapter, consideration must be given to the need to
promote uniformity of the law among states that have enacted
similar laws.
SECTION 2. Section 2051.101, Occupations Code, is amended
to read as follows:
Sec. 2051.101. REGISTRATION REQUIRED. (a) Except as
provided by Subsection (b), a person may not act as [Unless] an
athlete agent in this state or represent that the person is an
athlete agent in this state unless the person holds a certificate of
registration [is registered] under this chapter[, the athlete agent
may not:
[(1) contact, directly or indirectly, an athlete while
the athlete is eligible to participate in intercollegiate sports
contests; or
[(2) enter into a contract with an athlete].
(b) Before the issuance of a certificate of registration
under this chapter, a person may act as an athlete agent in this
state for all purposes except signing an agent contract, if:
(1) an athlete or a person acting on behalf of the
athlete initiates communication with the person; and
(2) within seven days after the date of the initial act
as an athlete agent, the person submits an application for
registration under this chapter.
(c) An agent [A] contract negotiated by an unregistered
athlete agent is void.
SECTION 3. Section 2051.102, Occupations Code, is amended
to read as follows:
Sec. 2051.102. APPLICATION REQUIREMENTS. (a) Except as
provided by Subsection (e), an [An] applicant for registration as
an athlete agent must apply on a form prescribed by the secretary of
state.
(b) An applicant must provide information required by the
secretary of state, including:
(1) the applicant's:
(A) name;
(B) principal business address;
(C) business or occupation for the five years
immediately preceding the date of application; and
(D) formal training, practical experience, and
educational background relating to the applicant's professional
activities as an athlete agent; [and]
(2) the name, sport, and last known team for each
person the applicant represented as an athlete agent during the
five years immediately preceding the date of application;
(3) whether the applicant or a person described by
Subdivision (5) has been subject to any of the following:
(A) a conviction of a crime that in this state is
a felony or a crime of moral turpitude;
(B) an administrative or a judicial
determination finding the applicant or other person made a false,
misleading, deceptive, or fraudulent representation;
(C) a sanction or suspension related to
occupational or professional conduct;
(D) a denial of an application for a certificate
of registration or license as an athlete agent; or
(E) a denial, revocation, or suspension of a
certificate of registration or license as an athlete agent;
(4) whether the applicant or a person described by
Subdivision (5) has engaged in conduct resulting in the imposition
on an athlete or educational institution of a sanction, suspension,
or declaration of ineligibility to participate in an
interscholastic or intercollegiate athletic event; and
(5) except as provided by Subsection (d), the name and
address of each person, except a bona fide employee on salary, who
is financially interested as a partner, associate, or profit sharer
in the applicant's business.
(c) An application[, if requested by the secretary of
state,] shall include the names and addresses of three [five]
professional references.
(d) If an applicant is a member of the State Bar of Texas,
the [an] application information required under Subsection (b)(5)
[(b)(2)] must include the name and address of each person who is
involved in the activities of the athlete agent. This subsection
does not require an applicant to state the name and address of a
member of a law firm or professional corporation who is not involved
in the business of the athlete agent.
(e) A person seeking certification as an athlete agent
under this chapter who holds a certificate of registration or
license as an athlete agent in another state may submit a copy of
the previous application and certificate or license instead of
submitting the application required by this section. The secretary
of state shall accept the application and the certificate or
license from the other state as an application for registration in
this state if the application to the other state:
(1) was submitted to the other state not earlier than
the 180th day before the date the application is submitted in this
state and the applicant certifies that the information contained in
the application is current;
(2) contains information substantially similar or
more comprehensive than the information required by this section;
and
(3) was signed by the applicant under penalty of
perjury.
SECTION 4. Section 2051.105, Occupations Code, is amended
by amending Subsection (b) and adding Subsections (c) and (d) to
read as follows:
(b) The secretary of state may deny an application for
registration if the secretary of state determines the applicant has
engaged in conduct that has a significant adverse effect on the
applicant's fitness to act as an athlete agent. In making the
determination, the secretary of state may consider whether the
applicant has:
(1) made a materially false, misleading, deceptive, or
fraudulent representation in the application or as an athlete
agent;
(2) engaged in conduct that would disqualify the
applicant from serving in a fiduciary capacity;
(3) engaged in conduct prohibited by Section 2051.351;
(4) had a registration or licensure as an athlete
agent denied, suspended, or revoked;
(5) been denied renewal of registration or licensure
as an athlete agent in any state;
(6) engaged in conduct that resulted in the imposition
on an athlete or educational institution of a sanction, suspension,
or declaration of ineligibility to participate in an
interscholastic or intercollegiate athletic event; or
(7) engaged in conduct that adversely reflects on the
applicant's credibility, honesty, or integrity.
(c) In making a determination under Subsection (b), the
secretary of state shall consider:
(1) how recently the conduct occurred;
(2) the nature of the conduct and the context in which
it occurred; and
(3) any other relevant conduct of the applicant.
(d) Judicial review of a denial of an application for
registration under Subsection (a) or (b) is by trial de novo and is
subject to Section 2001.173, Government Code.
SECTION 5. Section 2051.108, Occupations Code, is amended
by amending Subsection (a) and adding Subsection (e) to read as
follows:
(a) Except as provided by Subsection (e), an [An] applicant
for renewal of registration must apply on a form prescribed by the
secretary of state.
(e) A person who has submitted an application for renewal of
registration or licensure as an athlete agent in another state may
submit a copy of the application and certificate of registration or
license from the other state instead of submitting the application
required by this section. The secretary of state shall accept the
application for renewal from the other state as an application for
renewal under this section if the application to the other state:
(1) was submitted to the other state not earlier than
the 180th day before the date the renewal application is submitted
in this state and the applicant certifies that the information
contained in the application is current;
(2) contains information substantially similar to or
more comprehensive than the information required by this section;
and
(3) was signed by the applicant under penalty of
perjury.
SECTION 6. Section 2051.203, Occupations Code, is amended
by amending Subsection (a) and adding Subsection (d) to read as
follows:
(a) An agent contract or a financial services contract must
include:
(1) a schedule of fees, including:
(A) the amount and method of computing the
consideration to be paid by the athlete for services to be provided
by the athlete agent under the contract; and
(B) any other consideration the athlete agent
received or will receive from any other source for entering into the
contract or for providing the services; [and]
(2) a description of the professional services that
the athlete agent will perform for the athlete;
(3) the name of any person not listed in the
application for registration or renewal of registration who will be
compensated because the athlete signed the agent contract;
(4) a description of any expenses of the agent the
athlete agrees to reimburse;
(5) the duration of the contract; and
(6) the date the contract was signed.
(d) The athlete agent shall give a signed copy of the
contract to the athlete at the time the contract is signed.
SECTION 7. Section 2051.204(a), Occupations Code, is
amended to read as follows:
(a) An agent contract or a financial services contract must
include the following notice:
(1) THIS ATHLETE AGENT IS REGISTERED WITH THE
SECRETARY OF STATE OF THE STATE OF TEXAS. REGISTRATION WITH THE
SECRETARY OF STATE DOES NOT IMPLY APPROVAL OR ENDORSEMENT BY THE
SECRETARY OF STATE OF THE COMPETENCE OF THE ATHLETE AGENT OR OF THE
SPECIFIC TERMS AND CONDITIONS OF THIS CONTRACT.
NOTICE TO CLIENT
(2) DO NOT SIGN THIS CONTRACT UNTIL YOU HAVE READ IT OR
IF IT CONTAINS BLANK SPACES.
(3) IF YOU DECIDE THAT YOU DO NOT WISH TO PURCHASE THE
SERVICES OF THE ATHLETE AGENT, YOU MAY CANCEL THIS CONTRACT BY
NOTIFYING THE ATHLETE AGENT IN WRITING OF YOUR DESIRE TO CANCEL THE
CONTRACT NOT LATER THAN THE 16TH DAY AFTER THE DATE ON WHICH YOU
SIGN THIS CONTRACT. YOU MAY NOT WAIVE THE RIGHT TO CANCEL THIS
CONTRACT. IF YOU CANCEL THIS CONTRACT WITHIN 16 DAYS, YOU ARE NOT
REQUIRED TO PAY ANY CONSIDERATION UNDER THE CONTRACT OR RETURN ANY
CONSIDERATION RECEIVED.
(4) YOU MAY LOSE YOUR ELIGIBILITY TO COMPETE AS AN
ATHLETE IN YOUR SPORT. CANCELLATION OF THIS CONTRACT MAY NOT
REINSTATE YOUR ELIGIBILITY.
(5) IF YOU HAVE AN ATHLETIC DIRECTOR, WITHIN 72 HOURS
AFTER ENTERING INTO THIS CONTRACT BOTH YOU AND YOUR ATHLETE AGENT
MUST NOTIFY YOUR ATHLETIC DIRECTOR.
SECTION 8. Section 2051.351(a), Occupations Code, is
amended to read as follows:
(a) An athlete agent may not:
(1) publish or cause to be published:
(A) false, fraudulent, or misleading
information; or
(B) a false, fraudulent, or misleading:
(i) representation;
(ii) notice; or
(iii) advertisement;
(2) provide false information;
(3) make a false promise or representation relating to
employment;
(4) divide fees with or receive compensation from:
(A) a person exempt from registration under this
chapter under Section 2051.005; or
(B) a professional sports league or franchise,
including a representative or employee of the league or franchise;
(5) enter into a written or oral agreement with an
employee of an institution of higher education in which the athlete
agent offers a thing of value to the employee for the referral of
clients by the employee;
(6) offer a thing of value to induce the athlete to
enter into an agreement with the athlete agent in which the athlete
agent will represent the athlete; [and]
(7) except as provided by this chapter, before an
athlete completes the athlete's last intercollegiate football or
basketball contest:
(A) directly contact the athlete; or
(B) enter into an oral or written agreement with
the athlete for the athlete agent to represent the athlete;
(8) furnish anything of value to any person other than
the athlete or another registered athlete agent to induce an
athlete to enter into an agreement with the athlete agent;
(9) initiate contact with an athlete unless registered
under this chapter;
(10) fail to retain or permit inspection of the
records required to be retained by Section 2051.352;
(11) predate or postdate an agent contract; or
(12) fail to notify an athlete before the athlete
signs an agent contract that the signing may make the athlete
ineligible to participate in intercollegiate sports.
SECTION 9. Section 2051.352(a), Occupations Code, is
amended to read as follows:
(a) An athlete agent shall maintain a record of:
(1) each athlete represented by the athlete agent,
including:
(A) the name and address of the athlete;
(B) fees paid by the athlete; and
(C) services performed by the athlete agent for
the athlete; [and]
(2) travel and entertainment expenses incurred by the
athlete agent, including expenses for:
(A) food and beverages;
(B) hospitality rooms;
(C) sporting events;
(D) theater and music events; and
(E) transportation, lodging, and admission
relating to entertainment;
(3) any agent contract entered into by the athlete
agent; and
(4) any direct costs incurred by the athlete agent in
recruiting or soliciting an athlete to enter into an agent
contract.
SECTION 10. Section 2051.402, Occupations Code, is amended
by adding Subsection (c) to read as follows:
(c) By acting as an athlete agent in this state, a
nonresident appoints the secretary of state as the nonresident's
agent for service of process in a civil action in this state related
to an act by the person as an athlete agent.
SECTION 11. Section 2051.551, Occupations Code, is amended
to read as follows:
Sec. 2051.551. CIVIL SUIT. (a) An institution of higher
education adversely affected by an athlete agent's violation of
this chapter may file suit against the athlete agent for damages.
(b) A cause of action under this section does not accrue
until the educational institution discovers or by the exercise of
reasonable diligence would have discovered the violation by the
athlete agent or former athlete.
(c) Any liability of the athlete agent or the former athlete
under this section is several and not joint.
(d) This chapter does not restrict the rights, remedies, or
defense of any person under any other law.
SECTION 12. (a) A registration under Chapter 2051,
Occupations Code, in effect on the effective date of this Act
continues in effect under the former law until it expires or is
revoked, and the former law is continued in effect for that purpose.
(b) A person who submits an application for registration as
an athlete agent under Chapter 2051, Occupations Code, that is
pending on the effective date of this Act must resubmit the
application under Chapter 2051, Occupations Code, as amended by
this Act, after the effective date for the application to be
effective.
(c) A contract entered into under Chapter 2051, Occupations
Code, as it existed immediately before the effective date of this
Act, is covered by the former law, and the former law is continued
in effect for that purpose.
SECTION 13. This Act takes effect September 1, 2003.