House of Representatives

SB 1180

uniform athletes agent act

Sponsors: Bennet: cummiskey

DP	Committee on Commerce and Economic Development
X	Committee on Education
	Caucus and COW	This bill as introduced contains a PROP 108 clause.
	As Passed the House

SB 1180 specifies the terms that must be included in contracts between athlete agents and student athletes and requires athlete agents to register with the Secretary of State. The bill further regulates activities of athlete agents, outlines penalties and remedies, and establishes reciprocity for agent registration.

History

Currently Arizona has laws governing athlete agents (Title 15, Chapter 13, Article 10), which define terms, outline unlawful activities, specify requirements for entering into a contractual agreement and establish civil liability. In addition to Arizona, 27 other states have laws pertaining to athlete agents, including provisions that address agent registration and disclosure requirements.

SB 1180 replaces the existing athlete agent statutes with the Uniform Athlete Agents Act. The Uniform Athlete Agents Act was drafted by the National Conference of Commissioners on Uniform State Laws (NCCUSL) on behalf of the National Collegiate Athletics Association (NCAA) in order to establish consistency and clarify requirements among the states for athletes and their agents. The NCCUSL is comprised of more than 300 lawyers, judges, and law professors, and is the only organization that drafts acts in areas of law where uniformity among states is needed. The Uniform Athlete Agents Act has been in the drafting stages for a few years and was finally approved in August of 2000. Arizona is among 18 states that have introduced the Uniform Athlete Agents Act.

Provisions

· Defines agency contract as an agreement in which a student athlete authorizes a person to negotiate or solicit a professional sports services contract or an endorsement contract on behalf of the student athlete.

· Defines athlete agent as an individual who enters into an agency contract with a student athlete or, directly or indirectly, recruits or solicits a student athlete to enter into an agency contract. Excluded from the term athlete agent are guardians, spouses, sibling or other individuals acting solely on behalf of a professional sports team or a professional sports organization.

· Defines endorsement contract as an agreement under which a student athlete is employed or receives consideration to use on behalf of the other party any value that the student athlete may generate because of publicity, reputation, following or fame that was obtained because of athletic ability or performance.

· Defines professional sports services contract as an agreement under which an individual is employed, or agrees to render services, as a player on a professional sports team, with a professional sports organization or as a professional athlete.

· Defines student athlete as an individual who engages in, is eligible to engage in or may be eligible in the future to engage in any intercollegiate sport.

· Stipulates that the Secretary of State is appointed to act as nonresidents agent for service of process in any civil action in this state that is in response to the activities of an athlete agent acting in this state.

· Allows the Secretary of State to issue subpoenas for material relevant to the administration of this article.

Registration

· States that an individual may not act as an athlete agent in this state without holding a certificate of registration.

· Permits an individual without a certificate of registration to act as an athlete agent for purposes other than signing an agency contract as long as the following requirements are met:

1. A student athlete or another person acting on behalf of the student athlete initiates communication.

2. An application for registration as an athlete agent in this state is submitted within seven days after the initial act as an athlete agent.

· Requires athlete agent applicants to submit an application in their name to the Secretary of State and submit, under penalty of perjury, information related to experience, training, criminal convictions, sanctions and disciplinary actions that involve the agent or business associates and sanctions applied to students or schools resulting from the agent’s actions or his business associates’ actions.

· Allows an individual who has a certificate of registration or licensure as an athlete agent in another state to submit a copy of the application and certificate in lieu of submitting an athlete agent application to the Secretary of State. The Secretary of State shall accept the information as an application for registration in this state if it meets the following requirements:

1. All information in the application is current and correct and was submitted in the other state within six months immediately preceding the submission of application to this state.

2. Information is substantially similar or more comprehensive than the required application submitted in this state.

3. The application was signed by the applicant under penalty of perjury.

· Authorizes the Secretary of State to refuse the issuance of a certificate of registration if the Secretary of state deems the applicant has engaged in conduct that has a significant effect on the applicants fitness to act as an athlete agent. The bill outlines the information that may be considered in doing so.

· Specifies that an application for renewal shall contain current information and be signed under penalty of perjury.

· Allows the Secretary of State to accept an application for renewal and valid certificate of registration or licensure from another state in lieu of an application for renewal in this state as long as it meets certain requirements.

· States that certification of registration or renewal of registration is valid for two years from the date of issuance.

· Permits the Secretary of State to suspend, revoke, or refuse to renew a registration for conduct that would that would have justified a denial of registration, after proper notice and an opportunity for a hearing have been made.

· Authorizes the Secretary of State to issue temporary certificate of registration while an application for registration or renewal is pending.

· Establishes a $20.00 fee for each application registration and renewal.

Contracts

· Stipulates that agency contracts need to be signed or otherwise authenticated and contain information such as the amount and method of calculation monies that will paid to the student athlete, lists names of individual who will be compensated, description of services and expenses, as well as a warning to the student regarding the implication of signing the contract.

· States the information that must be included in the warning to the student as follows:

1. You may lose your eligibility to compete as a student athlete in your sport.

2. Within 72 hours after entering into the contract, you and your athlete agent must notify your athletic director.

3. You may cancel the contract within 14 days after signing and cancellation may not reinstate your eligibility.

· States that agency contracts not conforming to this section are viodable by student athletes.

· Requires the athlete agent to provide a copy of the signed or otherwise authenticated contract to the student athlete at the time of execution.

· Stipulates that a student athlete and an agent who have entered into a contract must notify the educational institutions athletic director within 72 ours, or before the next scheduled athletic event that the athlete may participate in, whichever occurs first.

· States that a student may not waive the right to cancel an agency contract and if the student cancels the contract, he is not required to pay any consideration under the contract or return any consideration received from the athlete agent.

· States an athlete agent is required to retain information for five years relating to an agency contract, names and addresses of individuals represented by the agent, documentation of costs for recruitment or solicitation student athletes. The bill further states that this information must be available to the Secretary of State during business hours.

Conduct

· Outlines acts considered unlawful by an athlete agent and specifies a class 1 misdemeanor for such violations as giving materially false or misleading material, furnishing anything of value to a student athlete prior to the student athlete entering into the agency contract, initiated contact with a student athlete without being registered with the Secretary of Sate.

Civil Remedies

· Permits education institutions to bring a cause of action against an athlete agent or former student athlete who violates agent laws for damages incurred. Allows the court to award prevailing party costs and reasonable attorney fees.

· States that the right to take civil action does not occur until the educational institution discovers, or would have discover by exercising reasonable diligence, the violation by the agent or former student.

· Specifies that the liability of the agent and former student athlete is several and not joint.

· States that this article does not restrict other legal or equitable rights, remedies or defenses of any person.

· Establishes a civil penalty against an agent in the amount of $25,000 for each violation.

SB 1180 passed the Committee on Commerce and Economic Development unamended.

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45th Legislature

First Regular Session 5 March 23, 2001

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