House Bill hb1477

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    Florida House of Representatives - 2001                HB 1477

        By Representative Benson






  1                      A bill to be entitled

  2         An act relating to athlete agents; revising pt.

  3         IX, ch. 468, F.S., to adopt a uniform law for

  4         regulating athlete agents in place of current

  5         law regulating athlete agents; creating ss.

  6         468.4611-468.4631, F.S.; providing a short

  7         title; providing definitions; providing for

  8         service of process and issuance of subpoenas;

  9         requiring registration of athlete agents and

10         providing requirements therefor; providing for

11         issuance and renewal of certificates of

12         registration; providing for suspension,

13         revocation, or refusal to renew registration;

14         providing for temporary registration; providing

15         fees; providing contract requirements;

16         requiring certain notice to educational

17         institution; providing student-athlete's right

18         to cancel a contract; providing recordkeeping

19         requirements; prohibiting certain conduct;

20         providing criminal penalties, civil remedies,

21         and administrative penalties; providing

22         liability; providing for uniformity of

23         application and construction; providing

24         requirements with respect to electronic

25         records, signatures, and contracts; repealing

26         ss. 468.451-468.457, F.S., relating to

27         regulation of athlete agents, to conform;

28         providing applicability to current licensees;

29         providing severability; providing an effective

30         date.

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  1  Be It Enacted by the Legislature of the State of Florida:

  2

  3         Section 1.  Sections 468.4611, 468.4612, 468.4613,

  4  468.4614, 468.4615, 468.4616, 468.4617, 468.4618, 468.4619,

  5  468.4621, 468.4622, 468.4623, 468.4624, 468.4625, 468.4626,

  6  468.4627, 468.4628, 468.4629, and 468.4631, Florida Statutes,

  7  are created to read:

  8         468.4611  Short title.--This part may be cited as the

  9  "Uniform Athlete Agents Act."

10         468.4612  Definitions.--In this part:

11         (1)  "Agency contract" means an agreement in which a

12  student-athlete authorizes a person to negotiate or solicit on

13  behalf of the student-athlete a professional-sports-services

14  contract or an endorsement contract.

15         (2)  "Athlete agent" means an individual who enters

16  into an agency contract with a student-athlete or, directly or

17  indirectly, recruits or solicits a student-athlete to enter

18  into an agency contract. The term includes an individual who

19  represents to the public that the individual is an athlete

20  agent. The term does not include a spouse, parent, sibling,

21  grandparent, or guardian of the student-athlete or an

22  individual acting solely on behalf of a professional sports

23  team or professional sports organization.

24         (3)  "Athletic director" means an individual

25  responsible for administering the overall athletic program of

26  an educational institution or, if an educational institution

27  has separately administered athletic programs for male

28  students and female students, the athletic program for males

29  or the athletic program for females, as appropriate.

30         (4)  "Contact" means a communication, direct or

31  indirect, between an athlete agent and a student-athlete to

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  1  recruit or solicit the student-athlete to enter into an agency

  2  contract.

  3         (5)  "Department" means the Department of Business and

  4  Professional Regulation.

  5         (6)  "Endorsement contract" means an agreement under

  6  which a student-athlete is employed or receives consideration

  7  to use on behalf of the other party any value that the

  8  student-athlete may have because of publicity, reputation,

  9  following, or fame obtained because of athletic ability or

10  performance.

11         (7)  "Intercollegiate sport" means a sport played at

12  the collegiate level for which eligibility requirements for

13  participation by a student-athlete are established by a

14  national association for the promotion or regulation of

15  collegiate athletics.

16         (8)  "Person" means an individual, corporation,

17  business trust, estate, trust, partnership, limited liability

18  company, association, joint venture, government or

19  governmental subdivision, agency, or instrumentality, public

20  corporation, or any other legal or commercial entity.

21         (9)  "Professional-sports-services contract" means an

22  agreement under which an individual is employed, or agrees to

23  render services, as a player on a professional sports team,

24  with a professional sports organization, or as a professional

25  athlete.

26         (10)  "Record" means information that is inscribed on a

27  tangible medium or that is stored in an electronic or other

28  medium and is retrievable in perceivable form.

29         (11)  "Registration" means registration as an athlete

30  agent pursuant to this part.

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  1         (12)  "State" means a state of the United States, the

  2  District of Columbia, Puerto Rico, the United States Virgin

  3  Islands, or any territory or insular possession subject to the

  4  jurisdiction of the United States.

  5         (13)  "Student-athlete" means an individual who engages

  6  in, is eligible to engage in, or may be eligible in the future

  7  to engage in any intercollegiate sport. If an individual is

  8  permanently ineligible to participate in a particular

  9  intercollegiate sport, the individual is not a student-athlete

10  for purposes of that sport.

11         468.4613  Service of process; subpoenas.--

12         (1)  By acting as an athlete agent in this state, a

13  nonresident individual appoints the department as the

14  individual's agent for service of process in any civil action

15  in this state related to the individual's acting as an athlete

16  agent in this state.

17         (2)  The department may issue subpoenas for any

18  material that is relevant to the administration of this part.

19         468.4614  Athlete agents; registration required; void

20  contracts.--

21         (1)  Except as otherwise provided in subsection (2), an

22  individual may not act as an athlete agent in this state

23  without holding a certificate of registration under s.

24  468.4616 or s. 468.4618.

25         (2)  Before being issued a certificate of registration,

26  an individual may act as an athlete agent in this state for

27  all purposes except signing an agency contract if:

28         (a)  A student-athlete or another person acting on

29  behalf of the student-athlete initiates communication with the

30  individual; and

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  1         (b)  Within 7 days after an initial act as an athlete

  2  agent, the individual submits an application for registration

  3  as an athlete agent in this state.

  4         (3)  An agency contract resulting from conduct in

  5  violation of this section is void, and the athlete agent shall

  6  return any consideration received under the contract.

  7         468.4615  Registration as athlete agent; form;

  8  requirements.--

  9         (1)  An applicant for registration shall submit an

10  application for registration to the department in a form

11  prescribed by the department. An application filed under this

12  section is a public record. The application must be in the

13  name of an individual and, except as otherwise provided in

14  subsection (2), signed or otherwise authenticated by the

15  applicant under penalty of perjury and must state or contain:

16         (a)  The name of the applicant and the address of the

17  applicant's principal place of business;

18         (b)  The name of the applicant's business or employer,

19  if applicable;

20         (c)  Any business or occupation engaged in by the

21  applicant for the 5 years next preceding the date of

22  submission of the application;

23         (d)  A description of the applicant's:

24         1.  Formal training as an athlete agent;

25         2.  Practical experience as an athlete agent; and

26         3.  Educational background relating to the applicant's

27  activities as an athlete agent;

28         (e)  The names and addresses of three individuals not

29  related to the applicant who are willing to serve as

30  references;

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  1         (f)  The name, sport, and last known team for each

  2  individual for whom the applicant acted as an athlete agent

  3  during the 5 years next preceding the date of submission of

  4  the application;

  5         (g)  The names and addresses of all persons who are:

  6         1.  With respect to the athlete agent's business if it

  7  is not a corporation, the partners, members, officers,

  8  managers, associates, or profit sharers of the business; and

  9         2.  With respect to a corporation employing the athlete

10  agent, the officers, directors, and any shareholder of the

11  corporation having an interest of 5 percent or greater;

12         (h)  Whether the applicant or any person named pursuant

13  to paragraph (g) has been convicted of a crime that, if

14  committed in this state, would be a crime involving moral

15  turpitude or a felony, and identify the crime;

16         (i)  Whether there has been any administrative or

17  judicial determination that the applicant or any person named

18  pursuant to paragraph (g) has made a false, misleading,

19  deceptive, or fraudulent representation;

20         (j)  Any instance in which the conduct of the applicant

21  or any person named pursuant to paragraph (g) resulted in the

22  imposition of a sanction, suspension, or declaration of

23  ineligibility to participate in an interscholastic or

24  intercollegiate athletic event on a student-athlete or

25  educational institution;

26         (k)  Any sanction, suspension, or disciplinary action

27  taken against the applicant or any person named pursuant to

28  paragraph (g) arising out of occupational or professional

29  conduct; and

30         (l)  Whether there has been any denial of an

31  application for, suspension or revocation of, or refusal to

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  1  renew the registration or licensure of the applicant or any

  2  person named pursuant to paragraph (g) as an athlete agent in

  3  any state.

  4         (2)  An individual who has submitted an application

  5  for, and holds a certificate of, registration or licensure as

  6  an athlete agent in another state may submit a copy of the

  7  application and certificate in lieu of submitting an

  8  application in the form prescribed pursuant to subsection (1).

  9  The department shall accept the application and the

10  certificate from the other state as an application for

11  registration in this state if the application to the other

12  state:

13         (a)  Was submitted in the other state within 6 months

14  next preceding the submission of the application in this state

15  and the applicant certifies that the information contained in

16  the application is current;

17         (b)  Contains information substantially similar to or

18  more comprehensive than that required in an application

19  submitted in this state; and

20         (c)  Was signed by the applicant under penalty of

21  perjury.

22         468.4616  Certificate of registration; issuance or

23  denial; renewal.--

24         (1)  Except as otherwise provided in subsection (2),

25  the department shall issue a certificate of registration to an

26  individual who complies with s. 468.4615(1) or whose

27  application has been accepted under s. 468.4615(2).

28         (2)  The department may refuse to issue a certificate

29  of registration if the department determines that the

30  applicant has engaged in conduct that has a significant

31  adverse effect on the applicant's fitness to act as an athlete

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  1  agent. In making the determination, the department may

  2  consider whether the applicant has:

  3         (a)  Been convicted of a crime that, if committed in

  4  this state, would be a crime involving moral turpitude or a

  5  felony;

  6         (b)  Made a materially false, misleading, deceptive, or

  7  fraudulent representation in the application or as an athlete

  8  agent;

  9         (c)  Engaged in conduct that would disqualify the

10  applicant from serving in a fiduciary capacity;

11         (d)  Engaged in conduct prohibited by s. 468.4625;

12         (e)  Had a registration or licensure as an athlete

13  agent suspended, revoked, or denied or been refused renewal of

14  registration or licensure as an athlete agent in any state;

15         (f)  Engaged in conduct the consequence of which was

16  that a sanction, suspension, or declaration of ineligibility

17  to participate in an interscholastic or intercollegiate

18  athletic event was imposed on a student-athlete or educational

19  institution; or

20         (g)  Engaged in conduct that significantly adversely

21  reflects on the applicant's credibility, honesty, or

22  integrity.

23         (3)  In making a determination under subsection (2),

24  the department shall consider:

25         (a)  How recently the conduct occurred;

26         (b)  The nature of the conduct and the context in which

27  it occurred; and

28         (c)  Any other relevant conduct of the applicant.

29         (4)  An athlete agent may apply to renew a registration

30  by submitting an application for renewal in a form prescribed

31  by the department. An application filed under this section is

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  1  a public record. The application for renewal must be signed by

  2  the applicant under penalty of perjury and must contain

  3  current information on all matters required in an original

  4  registration.

  5         (5)  An individual who has submitted an application for

  6  renewal of registration or licensure in another state, in lieu

  7  of submitting an application for renewal in the form

  8  prescribed pursuant to subsection (4), may file a copy of the

  9  application for renewal and a valid certificate of

10  registration or licensure from the other state. The department

11  shall accept the application for renewal from the other state

12  as an application for renewal in this state if the application

13  to the other state:

14         (a)  Was submitted in the other state within 6 months

15  next preceding the filing in this state and the applicant

16  certifies the information contained in the application for

17  renewal is current;

18         (b)  Contains information substantially similar to or

19  more comprehensive than that required in an application for

20  renewal submitted in this state; and

21         (c)  Was signed by the applicant under penalty of

22  perjury.

23         (6)  A certificate of registration or a renewal of a

24  registration is valid for 2 years.

25         468.4617  Suspension, revocation, or refusal to renew

26  registration.--

27         (1)  The department may suspend, revoke, or refuse to

28  renew a registration for conduct that would have justified

29  denial of registration under s. 468.4616(2).

30         (2)  The department may deny, suspend, revoke, or

31  refuse to renew a certificate of registration or licensure

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  1  only after proper notice and an opportunity for a hearing.

  2  Chapter 120, the Administrative Procedure Act, applies to this

  3  part.

  4         468.4618  Temporary registration.--The department may

  5  issue a temporary certificate of registration while an

  6  application for registration or renewal of registration is

  7  pending.

  8         468.4619  Registration and renewal fees.--An

  9  application for registration or renewal of registration must

10  be accompanied by a fee in the following amount:

11         (1)  For an initial application for

12  registration.............................................$500.

13         (2)  For an application for registration based upon a

14  certificate of registration or licensure issued by another

15  state....................................................$500.

16         (3)  For an application for renewal of

17  registration.............................................$500.

18         (4)  For an application for renewal of registration

19  based upon an application for renewal of registration or

20  licensure submitted in another state.....................$500.

21         468.4621  Required form of contract.--

22         (1)  An agency contract must be in a record, signed, or

23  otherwise authenticated by the parties.

24         (2)  An agency contract must state or contain:

25         (a)  The amount and method of calculating the

26  consideration to be paid by the student-athlete for services

27  to be provided by the athlete agent under the contract and any

28  other consideration the athlete agent has received or will

29  receive from any other source for entering into the contract

30  or for providing the services;

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  1         (b)  The name of any person not listed in the

  2  application for registration or renewal of registration who

  3  will be compensated because the student-athlete signed the

  4  agency contract;

  5         (c)  A description of any expenses that the

  6  student-athlete agrees to reimburse;

  7         (d)  A description of the services to be provided to

  8  the student-athlete;

  9         (e)  The duration of the contract; and

10         (f)  The date of execution.

11         (3)  An agency contract must contain, in close

12  proximity to the signature of the student-athlete, a

13  conspicuous notice in boldface type in capital letters

14  stating:

15

16                    WARNING TO STUDENT-ATHLETE

17

18         IF YOU SIGN THE CONTRACT:

19              1.  YOU MAY LOSE YOUR ELIGIBILITY TO

20         COMPETE AS A STUDENT-ATHLETE IN YOUR SPORT;

21              2.  IF YOU HAVE AN ATHLETIC DIRECTOR,

22         WITHIN 72 HOURS AFTER ENTERING INTO THE

23         CONTRACT, BOTH YOU AND YOUR ATHLETE AGENT MUST

24         NOTIFY YOUR ATHLETIC DIRECTOR; AND

25              3.  YOU MAY CANCEL THIS CONTRACT WITHIN 14

26         DAYS AFTER SIGNING IT. CANCELLATION OF THIS

27         CONTRACT MAY NOT REINSTATE YOUR ELIGIBILITY.

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29         (4)  An agency contract that does not conform to this

30  section is voidable by the student-athlete. If a

31  student-athlete voids an agency contract, the student-athlete

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  1  is not required to pay any consideration under the contract or

  2  to return any consideration received from the athlete agent to

  3  induce the student-athlete to enter into the contract.

  4         (5)  The athlete agent shall give a record of the

  5  signed or otherwise authenticated agency contract to the

  6  student-athlete at the time of execution.

  7         468.4622  Notice to educational institution.--

  8         (1)  Within 72 hours after entering into an agency

  9  contract or before the next scheduled athletic event in which

10  the student-athlete may participate, whichever occurs first,

11  the athlete agent shall give notice in a record of the

12  existence of the contract to the athletic director of the

13  educational institution at which the student-athlete is

14  enrolled or the athlete agent has reasonable grounds to

15  believe the student-athlete intends to enroll.

16         (2)  Within 72 hours after entering into an agency

17  contract or before the next athletic event in which the

18  student-athlete may participate, whichever occurs first, the

19  student-athlete shall inform the athletic director of the

20  educational institution at which the student-athlete is

21  enrolled that he or she has entered into an agency contract.

22         468.4623  Student-athlete's right to cancel.--

23         (1)  A student-athlete may cancel an agency contract by

24  giving notice of the cancellation to the athlete agent in a

25  record within 14 days after the contract is signed.

26         (2)  A student-athlete may not waive the right to

27  cancel an agency contract.

28         (3)  If a student-athlete cancels an agency contract,

29  the student-athlete is not required to pay any consideration

30  under the contract or to return any consideration received

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  1  from the athlete agent to induce the student-athlete to enter

  2  into the contract.

  3         468.4624  Required records.--

  4         (1)  An athlete agent shall retain the following

  5  records for a period of 5 years:

  6         (a)  The name and address of each individual

  7  represented by the athlete agent;

  8         (b)  Any agency contract entered into by the athlete

  9  agent; and

10         (c)  Any direct costs incurred by the athlete agent in

11  the recruitment or solicitation of a student-athlete to enter

12  into an agency contract.

13         (2)  Records required by subsection (1) to be retained

14  are open to inspection by the department during normal

15  business hours.

16         468.4625  Prohibited conduct.--

17         (1)  An athlete agent, with the intent to induce a

18  student-athlete to enter into an agency contract, may not:

19         (a)  Give any materially false or misleading

20  information or make a materially false promise or

21  representation;

22         (b)  Furnish anything of value to a student-athlete

23  before the student-athlete enters into the agency contract; or

24         (c)  Furnish anything of value to any individual other

25  than the student-athlete or another registered athlete agent.

26         (2)  An athlete agent may not intentionally:

27         (a)  Initiate contact with a student-athlete unless

28  registered under this part;

29         (b)  Refuse or fail to retain or permit inspection of

30  the records required to be retained by s. 468.4624;

31         (c)  Fail to register when required by s. 468.4614;

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  1         (d)  Provide materially false or misleading information

  2  in an application for registration or renewal of registration;

  3         (e)  Predate or postdate an agency contract; or

  4         (f)  Fail to notify a student-athlete before the

  5  student-athlete signs or otherwise authenticates an agency

  6  contract for a particular sport that the signing or

  7  authentication may make the student-athlete ineligible to

  8  participate as a student-athlete in that sport.

  9         468.4626  Criminal penalties.--An athlete agent who

10  violates s. 468.4625 commits a felony of the second degree,

11  punishable as provided in s. 775.082, s. 775.083, or s.

12  775.084.

13         468.4627  Civil remedies.--

14         (1)  An educational institution has a right of action

15  against an athlete agent or a former student-athlete for

16  damages caused by a violation of this part. In an action under

17  this section, the court may award to the prevailing party

18  costs and reasonable attorney's fees.

19         (2)  Damages of an educational institution under

20  subsection (1) include losses and expenses incurred because,

21  as a result of the conduct of an athlete agent or former

22  student-athlete, the educational institution was injured by a

23  violation of this part or was penalized, disqualified, or

24  suspended from participation in athletics by a national

25  association for the promotion and regulation of athletics, by

26  an athletic conference, or by reasonable self-imposed

27  disciplinary action taken to mitigate sanctions likely to be

28  imposed by such an organization.

29         (3)  A right of action under this section does not

30  accrue until the educational institution discovers or by the

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  1  exercise of reasonable diligence would have discovered the

  2  violation by the athlete agent or former student-athlete.

  3         (4)  Any liability of the athlete agent or the former

  4  student-athlete under this section is several and not joint.

  5         (5)  This part does not restrict rights, remedies, or

  6  defenses of any person under law or equity.

  7         468.4628  Administrative penalty.--The department may

  8  assess a civil penalty against an athlete agent not to exceed

  9  $25,000 for a violation of this part.

10         468.4629  Uniformity of application and

11  construction.--In applying and construing this uniform act,

12  consideration must be given to the need to promote uniformity

13  of the law with respect to its subject matter among states

14  that enact it.

15         468.4631  Electronic records, signatures, and

16  contracts.--The provisions of this part governing the legal

17  effect, validity, or enforceability of electronic records or

18  signatures, and of contracts formed or performed with the use

19  of such records or signatures, conform to the requirements of

20  Section 102 of the Electronic Signatures in Global and

21  National Commerce Act, Pub. L. No. 106-229, 114 Stat. 464

22  (2000), and supersede, modify, and limit the Electronic

23  Signatures in Global and National Commerce Act.

24         Section 2.  Sections 468.451, 468.452, 468.453,

25  468.4535, 468.4536, 468.454, 468.456, 468.4561, 468.45615,

26  468.4562, 468.4563, 468.4564, 468.4565, and 468.457, Florida

27  Statutes, are repealed.

28         Section 3.  Any person who, on the effective date of

29  this act, has a valid license as an athlete agent issued under

30  the provisions of part IX of chapter 468, Florida Statutes,

31  repealed by this act shall be considered registered under the

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  1  provisions of part IX of chapter 468, Florida Statutes,

  2  created by this act until the beginning of the immediately

  3  ensuing renewal period. At the time of renewal of such

  4  license, such person must register as required under the

  5  provisions of part IX of chapter 468, Florida Statutes,

  6  created by this act.

  7         Section 4.  If any provision of this act or its

  8  application to any person or circumstance is held invalid, the

  9  invalidity does not affect other provisions or applications of

10  this act which can be given effect without the invalid

11  provision or application, and to this end the provisions of

12  this act are severable.

13         Section 5.  This act shall take effect July 1, 2001.

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15            *****************************************

16                          HOUSE SUMMARY

17
      Adopts a uniform law for regulating athlete agents.
18    Eliminates current law regulating athlete agents, to
      conform.  See bill for details.
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