House of Representatives

SB 1180

uniform athletes agents act

Sponsors: Senators Bennett: Cummiskey

DP	Committee on Commerce and Economic Development
DP	Committee on Education
DPA	Caucus and COW	This bill as introduced contains a PROP 108 clause.
X	As Transmitted to the Governor

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 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 agents' 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 several 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 is a guardian, spouse, sibling or other individual acting solely on behalf of a professional sports team or 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.

· Provides definitions for other relevant terms.

· Stipulates that the Secretary of State is appointed to act as the agent on behalf of a nonresident agent for purposes of 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.

· Authorizes 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 filed with the Secretary of State.

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

1. A student athlete or a person acting on the athlete's behalf 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 the application to include pertinent information filed under penalty of perjury

1. Name of applicant and address of the principal place of business.

2. Name of applicant's business/employer, if applicable.

3. Previous five years' business/occupation activities.

4. Description of the formal training, practical experience and educational background.

5. Names/addresses of three references.

6. Name, sport, and last know team of individuals for whom the person acted as agent during previous five years.

7. Pertinent information relating to the business associates and corporation.

8. Disclosure of criminal convictions, including any administrative/judicial determinations, or fraudulent misrepresentations that involve the agent or business associates’ actions.

9. Any instance involving sanctions, suspension or declaration of ineligibility to participate in an interscholastic/intercollegiate athletic event on a student athlete or educational institution.

10. Any sanction, suspension, disciplinary action, taken against an applicant/associates that arose from occupational or professional misconduct.

· Allows for reciprocity of registration as outlined.

· Authorizes refusal of a certificate of registration if the Secretary of State determines the applicant engaged in conduct that significantly and adversely affects the applicant's fitness to act as an athlete agent. The bill outlines the information that may be considered.

· Specifies that an application for renewal shall contain current information and be signed under penalty of perjury. The renewal is subject to the open public record law.

· 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 justified a denial of registration. Provides for proper notice and an opportunity for an administrative hearing.

· Authorizes the Secretary of State to issue a 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

· Requires an agency contract to be signed or otherwise authenticated and outlines the pertinent information that must be included, such as the amount and method of calculating monies that will paid by the student athlete, 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 or before the next athletic event in which the student athlete may participate whichever comes first, 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 contracts that do not conform to the outlined provisions of the bill are voidable and the student athlete does not have to pay or return any consideration that was received as an inducement to sign the contract.

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

· States an athlete agent must retain pertinent information for a period of five years. The bill further states the information must be open for inspection by the Secretary of State during business hours.

Conduct

· Outlines acts considered as unlawful and prescribes a class 1 misdemeanor for such violations. Makes it unlawful for an athlete agent to intentionally induce a student athlete to engage in the following conduct: to give materially false or misleading information; to furnish anything of value to a student athlete before the student enters into a contract; or, to furnish anything of value to any individual other than the athlete.

Civil Remedies

· Permits an educational institution to bring a cause of action against an athlete agent or former student athlete for damages due to violations of law. 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 discovered by exercising reasonable diligence, the violation by the agent or former student.

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

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

· Authorizes the Secretary of State to assess a civil penalty not to exceed $25,000 against an athlete agent for each violation of the provisions.

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45th Legislature

First Regular Session 5 May 10, 2001

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