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A BILL TO BE ENTITLED
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AN ACT
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relating to the regulation of athlete agents. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2051.001, Occupations Code, is amended |
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by amending Subdivisions (1), (2), and (3) and adding Subdivisions |
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(3-a) and (5-b) to read as follows: |
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(1) "Agent contract" means a contract or an agreement |
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under which an athlete authorizes an athlete agent to negotiate or |
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solicit [for employment] on behalf of the athlete [with] a |
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professional sports services contract or endorsement contract |
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[team]. |
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(2) "Athlete" means an individual who: |
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(A) is eligible to participate in |
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intercollegiate sports contests as a member of any [a] sports team |
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or as an individual competitor in any [a] sport at an institution of |
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higher education; or |
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(B) has participated as a member of any [an] |
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intercollegiate sports team or as an individual competitor in any |
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[an] intercollegiate sport at an institution of higher education |
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and has never signed an employment contract with a professional |
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sports team. |
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(3) "Athlete agent" means an individual other than a |
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spouse, parent, sibling, or guardian of a student athlete or an |
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individual acting solely on behalf of a professional sports team or |
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professional sports organization, who: |
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(A) [for compensation,] directly or indirectly |
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recruits or solicits an athlete to enter into an agent contract, a |
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financial services contract, or a professional sports services |
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contract with that individual or another person; [or] |
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(B) for compensation or in anticipation of |
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compensation [a fee,] procures, offers, promises, or attempts to |
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obtain employment for an athlete under [with] a professional sports |
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services contract or an endorsement contract; or |
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(C) represents to the public that the individual |
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is an athlete agent [team]. |
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(3-a) "Endorsement contract" means an agreement under |
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which an athlete is employed or receives consideration in exchange |
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for providing on behalf of the other party the value of the |
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athlete's reputation, publicity, following, or fame obtained as a |
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result of athletic ability or performance. |
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(5-b) "Professional sports services contract" means |
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an agreement under which an individual is employed as a |
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professional athlete or agrees to render services as a player on a |
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foreign or domestic professional sports team or with a foreign or |
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domestic professional sports organization. |
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SECTION 2. Sections 2051.151(a) and (a-1), Occupations |
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Code, are amended to read as follows: |
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(a) An athlete agent shall, before contacting an athlete or |
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entering into an agent contract with an athlete in this state, |
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deposit with the secretary of state a surety bond or other security |
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in a form prescribed by the secretary of state, in the amount of |
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$50,000, payable to the state and conditioned on: |
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(1) the athlete agent complying with this chapter; |
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(2) the payment of any administrative penalty assessed |
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under Subchapter J; and |
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(3) the payment of any damages awarded to an |
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institution of higher education or an athlete as a result of the |
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athlete agent offering or providing a thing of value to an athlete |
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or a family member of the athlete. |
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(a-1) An athlete agent shall, before entering into a |
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financial services contract with an athlete, deposit with the |
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secretary of state a surety bond or other security in a form |
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prescribed by the secretary of state, in the amount of $100,000, |
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payable to the state and conditioned on: |
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(1) the athlete agent complying with this chapter; |
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(2) the payment of money owed to an individual or group |
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of individuals when the athlete agent or the athlete agent's |
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representative or agent receives the money; and |
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(3) the payment of damages to an athlete caused by the |
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intentional misrepresentation, fraud, deceit, or unlawful or |
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negligent act or omission of the athlete agent or of the athlete |
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agent's representative or employee while acting within the scope of |
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the financial services contract. |
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SECTION 3. Section 2051.351(a), Occupations Code, is |
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amended to read as follows: |
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(a) An athlete agent may not: |
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(1) publish or cause to be published: |
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(A) false, fraudulent, or misleading |
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information; or |
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(B) a false, fraudulent, or misleading: |
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(i) representation; |
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(ii) notice; or |
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(iii) advertisement; |
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(2) provide false information; |
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(3) make a false promise or representation relating to |
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employment; |
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(4) divide fees with or receive compensation from: |
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(A) a person exempt from registration under this |
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chapter under Section 2051.005; |
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(B) a professional sports league or franchise, |
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including a representative or employee of the league or franchise; |
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or |
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(C) an institution of higher education, |
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including a representative or employee of the institution's |
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athletics department; |
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(5) enter into a written or oral agreement with an |
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employee of an institution of higher education in which the athlete |
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agent offers a thing of value to the employee for the referral of |
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clients by the employee; |
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(6) before an athlete completes the athlete's last |
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intercollegiate sports contest in any sport for which the athlete |
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may be eligible, offer a thing of value to the athlete or an |
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individual related to the athlete within the second degree by |
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affinity or consanguinity to induce the athlete to enter into an |
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agreement with the athlete agent in which the athlete agent will |
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represent the athlete; |
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(7) before an athlete completes the athlete's last |
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intercollegiate sports contest in any sport for which the athlete |
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may be eligible, furnish a thing of value to the athlete or an |
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individual related to the athlete within the second degree by |
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affinity or consanguinity; |
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(8) except as provided by this chapter, before an |
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athlete completes the athlete's last intercollegiate sports |
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contest in any sport for which the athlete may be eligible: |
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(A) directly contact the athlete; or |
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(B) enter into an oral or written agreement with |
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the athlete for the athlete agent to represent the athlete; |
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(9) furnish anything of value to any person other than |
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the athlete or another registered athlete agent to induce an |
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athlete to enter into an agreement with the athlete agent; |
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(10) initiate any contact with an athlete, except as |
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authorized by this chapter; |
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(11) fail to retain or permit inspection of the |
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records required to be retained by Section 2051.352; |
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(12) predate or postdate an agent contract; |
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(13) fail to notify an athlete before the athlete |
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signs an agent contract that the signing may make the athlete |
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ineligible to participate in intercollegiate sports; or |
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(14) commit an act or cause a person to commit an act |
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on the athlete agent's behalf that causes an athlete to violate a |
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rule of the national association for the promotion and regulation |
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of intercollegiate athletics of which the athlete's institution of |
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higher education is a member. |
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SECTION 4. This Act takes effect September 1, 2017. |