ARIZONA STATE SENATE
Phoenix, Arizona
uniform athletes agents act
Requires athlete agents to
register with the Secretary of State and specifies terms that must be included
in contracts between agents and student athletes. Contains a Proposition 108 clause.
Problems with agents
improperly or illegally contacting student athletes is a growing concern for
the National Collegiate Athletics Association (NCAA), educational institutions
and others involved in student athletics.
The recruitment of student athletes who are still enrolled in school may
cause eligibility or other problems for both the student and the school. This is especially a concern when a student
athlete is unaware of the implications of signing an agency contract or the
school is not notified of the contract.
At least 28 states,
including Arizona, have passed laws addressing athlete agents; however, these
laws vary in agent registration and disclosure requirements and may cause
confusion among student athletes, athletic departments, educational
institutions and agents who may work in more than one state. To establish consistency and clarify
requirements placed on agents, student athletes and schools, the NCAA has asked
the National Conference of Commissioners on Uniform State Laws to develop a
Uniform Athlete Agents Act for enactment in all states.
S.B. 1180 replaces current
statute regulating athlete agents with the Uniform Athlete Agents Act. Many of the provisions found in Arizona’s
existing statute governing athlete agents are included in the Uniform Athlete
Agents Act. In addition, S.B. 1180
requires athlete agents to register with the Secretary of State, provides for a
list of factors that administrators may consider in determining whether to
issue a certification of registration or suspend, revoke or refuse to renew a
registration and provides for reciprocity among states in registration and
renewal applications. The legislation
also specifies terms that must be included in an agency contract, requirements
of notice to educational institutions, the right of the student athlete to
cancel an agency contract and records that must be retained by the athlete
agent. Enforcement of this legislation
is provided by prohibiting certain conduct and imposing criminal, civil and
administrative penalties.
The fiscal impact to the
state general fund associated with this measure is unknown at this time.
1. Prohibits athlete agents who are not registered with the Secretary of State’s Office from entering into contracts with student athletes in this state. Unregistered agents must submit a registration application within seven days of being approached by a student athlete or someone representing a student.
2. Requires an agent applying for registration to submit information, under penalty of perjury, relating to training and experience, as well as information about such things as criminal convictions, sanctions and disciplinary actions that have involved the agent or the agent’s business associates. Sanctions applied to schools or students resulting from the agent’s or business associates’ actions must also be reported.
3. Requires registration renewal applications to update information required in the original registration application.
4. Allows an athlete agent who is registered or licensed in another state to submit a copy of that state’s application and certificate in lieu of an Arizona application if certain conditions are met.
5. Specifies that registration and renewal applications are public records.
6. Requires the Secretary of State to register applicants who provide all required information unless information on the application shows that applicant is unfit to act as an athlete agent. Before denying registration, the Secretary of State must consider certain factors.
7. Allows the Secretary of State to suspend, revoke or refuse to renew a registration for conduct that would have justified a denial of registration after proper notice and an opportunity for a hearing.
8. Allows the Secretary of State to issue a temporary certificate of registration while an application for registration or renewal is pending.
9. Establishes yet-to-be-determined fees for registration and renewal certificates, which are valid for 2 years.
10. Requires agency contracts to be signed or otherwise authenticated and to contain information such as the amount and method of calculating payments to the agent, a description of services and expenses and a warning to the student about the implications of signing the contract. Students must receive a signed copy of the contract at the time it is executed.
11. Allows student athletes to cancel agency contracts within 14 days, or to void improper contracts and to keep any consideration that was given as an inducement to enter into the contract.
12. Prohibits student athletes from waiving the right to cancel an agency contract.
13. Requires a student athlete and an agent who have entered into a contract to notify the educational institution’s athletic director within 72 hours, or before the next scheduled athletic event that may involve the student, whichever occurs first.
14. Requires agents to retain information for five years relating to agency contracts and costs for recruiting or soliciting student athletes, and to make this information available to the Secretary of State during business hours.
15. Prescribes prohibited agent conduct, including such things as using misleading information to induce a student athlete to enter into an agency contract, failing to register, falsifying an application and predating or postdating an agency contract.
16. Establishes yet-to-be-determined penalties for violating agent laws.
17. Allows educational institutions to bring a civil action against an athlete agent or a former student athlete who violates agent laws for damages incurred, and allows the prevailing party in such a case to be awarded costs and reasonable attorney fees.
18. Provides 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 athlete.
19. Prescribes a civil penalty against an agent of up to $25,000 for each violation of agent laws.
20. Establishes liability of the agent and former student athlete as several and not joint.
21. Specifies that other legal or equitable rights, remedies or defenses of any person are not restricted.
22. Repeals existing statutes relating to athlete agents.
23. Defines terms.
24. Establishes the Secretary of State as the process service agent for civil actions involving activities by nonresident athlete agents.
25. Authorizes the Secretary of State to issue subpoenas necessary to administer athlete agent laws.
26. Contains a Proposition 108 clause requiring an affirmative vote of at least two-thirds of the members of each house of the Legislature.
Prepared by Senate Staff
January 29, 2001