Senate Bill sb2066e1

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  1                      A bill to be entitled

  2         An act relating to athlete agents; amending s.

  3         468.452, F.S.; revising a definition; amending

  4         s. 468.453, F.S.; revising licensure

  5         requirements; providing for service of process

  6         on nonresident agents; providing for temporary

  7         licenses; amending s. 468.454, F.S.; revising

  8         contract requirements; providing for

  9         cancellation of contracts; amending s. 468.456,

10         F.S.; providing for increased administrative

11         fines; amending s. 468.45615, F.S.; providing

12         additional criminal penalties for certain acts;

13         amending s. 468.4562, F.S.; revising provisions

14         relating to civil remedies available to

15         colleges and universities for violations of

16         athlete agent regulations; amending s.

17         468.4565, F.S.; revising business record

18         requirements; repealing s. 468.4563, F.S.,

19         relating to authority to require continuing

20         education by athlete agents; repealing s.

21         468.4564, relating to license display

22         requirements; providing an effective date.

23  

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

25  

26         Section 1.  Subsection (2) of section 468.452, Florida

27  Statutes, is amended to read:

28         468.452  Definitions.--For purposes of this part, the

29  term:

30         (2)  "Athlete agent" means a person who, directly or

31  indirectly, recruits or solicits a student athlete to enter


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  1  into an agent contract, or who, for any type of financial

  2  gain, procures, offers, promises, or attempts to obtain

  3  employment or promotional fees or benefits for a student

  4  athlete with a professional sports team or as a professional

  5  athlete, or with any promoter who markets or attempts to

  6  market the student athlete's athletic ability or athletic

  7  reputation. This term includes all employees and other persons

  8  acting on behalf of an athlete agent who participate in the

  9  activities included under this subsection. The term does not

10  include a spouse, parent, sibling, grandparent, or guardian of

11  the student-athlete or an individual acting solely on behalf

12  of a professional sports team or professional sports

13  organization.

14         Section 2.  Section 468.453, Florida Statutes, is

15  amended to read:

16         468.453  Licensure required; qualifications;

17  examination; bond; exception; license nontransferable.--

18         (1)  Any person who practices as an athlete agent in

19  this state must be licensed pursuant to this part.

20         (2)  A person shall be licensed as an athlete agent if

21  the applicant:

22         (a)  Is at least 18 years of age.

23         (b)  Is of good moral character.

24         (c)  Passes an examination provided by the department

25  which tests the applicant's proficiency to practice as an

26  athlete agent, including, but not limited to, knowledge of the

27  laws and rules of this state relating to athlete agents, this

28  part, and chapter 455.

29         (c)(d)  Has completed the application form and remitted

30  an application fee not to exceed $500, an examination fee not

31  to exceed the actual cost for the examination plus $500, an


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  1  active licensure fee not to exceed $2,000, and all other

  2  applicable fees provided for in this part or in chapter 455.

  3         (d)(e)  Has submitted to the department a fingerprint

  4  card for a criminal history records check. The fingerprint

  5  card shall be forwarded to the Division of Criminal Justice

  6  Information Systems within the Department of Law Enforcement

  7  for purposes of processing the fingerprint card to determine

  8  if the applicant has a criminal history record. The

  9  fingerprint card shall also be forwarded to the Federal Bureau

10  of Investigation for purposes of processing the fingerprint

11  card to determine if the applicant has a criminal history

12  record. The information obtained by the processing of the

13  fingerprint card by the Florida Department of Law Enforcement

14  and the Federal Bureau of Investigation shall be sent to the

15  department for the purpose of determining if the applicant is

16  statutorily qualified for licensure.

17         (e)(f)  Has not in any jurisdiction, within the

18  preceding 5 years, been convicted or found guilty of or

19  entered a plea of nolo contendere for, regardless of

20  adjudication, a crime which relates to the applicant's

21  practice or ability to practice as an athlete agent.

22         (g)  Has posted with the department a $15,000 surety

23  bond issued by an insurance company authorized to do business

24  in this state.  The bond shall be in favor of the State of

25  Florida, Department of Business and Professional Regulation,

26  for the use and benefit of any student athlete or college or

27  university within Florida who or which is injured or damaged,

28  including reasonable costs and attorney's fees, as a result of

29  acts or omissions by the athlete agent pursuant to a license

30  issued under this part.  The bond shall be written in the form

31  determined by the department. The bond shall provide that the


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  1  athlete agent is responsible for the acts or omissions of any

  2  representatives acting under the athlete agent's supervision

  3  or authority. The bond shall be in effect for and cover all

  4  times that the athlete agent has an active license and

  5  conducts business pursuant to that license in this or any

  6  other state.

  7         (3)  An unlicensed individual may act as an athlete

  8  agent if:

  9         (a)  A student-athlete or person acting on the

10  athlete's behalf initiates communication with the individual;

11  and

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

13  agent, the individual submits an application for licensure.

14  Members of The Florida Bar are exempt from the state laws and

15  rules component, and the fee for such, of the examination

16  required by this section.

17         (4)  A license issued to an athlete agent is not

18  transferable.

19         (5)  By acting as an athlete agent in this state, a

20  nonresident individual appoints the department as the

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

22  related to the individual's acting as an athlete agent.

23         (6)  The department may issue a temporary license while

24  an application for licensure is pending. If the department

25  issues a notice of intent to deny the license application, the

26  initial temporary license expires and may not be extended

27  during any proceeding or administrative or judicial review.

28         (7)(a)  An individual who has submitted an application

29  and holds a certificate, registration, or license as an

30  athlete agent in another state may submit a copy of the

31  application and certificate, registration, or license from the


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  1  other state in lieu of submitting an application in the form

  2  prescribed pursuant to this section. The department shall

  3  accept the application and the certificate from the other

  4  state as an application for registration in this state if the

  5  application in the other state:

  6         1.  Was submitted in the other state within 6 months

  7  next preceding the submission of the application in this state

  8  and the applicant certifies that the information contained in

  9  the application is current;

10         2.  Contains information substantially similar to or

11  more comprehensive than that required in an application

12  submitted in this state; and

13         3.  Was signed by the applicant under penalty of

14  perjury.

15         (b)  An applicant applying under this subsection must

16  meet all other requirements for licensure as provided by this

17  part.

18         Section 3.  Section 468.454, Florida Statutes, is

19  amended to read:

20         468.454  Contracts.--

21         (1)  An agent contract must be in a record, signed, or

22  otherwise authenticated by the parties.

23         (2)  An agent contract must state:

24         (a)  The amount and method of calculating the

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

26  to be provided by the athlete agent and any other

27  consideration the agent has received or will receive from any

28  other source under the contract;

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

30  application who will be compensated because the

31  student-athlete signed the agent contract;


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  1         (c)  A description of any expenses that the

  2  student-athlete agrees to reimburse;

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

  4  the student-athlete;

  5         (e)  The duration of the contract; and

  6         (f)  The date of execution.

  7         (3)  An agent contract must contain, in close proximity

  8  to the signature of the student-athlete, a conspicuous notice

  9  in boldface type in capital letters stating:

10  

11                    WARNING TO STUDENT-ATHLETE

12                                 

13         IF YOU SIGN THE CONTRACT:

14         1.  YOU MAY LOSE YOUR ELIGIBILITY TO COMPETE AS

15         A STUDENT-ATHLETE IN YOUR SPORT;

16         2.  IF YOU HAVE AN ATHLETIC DIRECTOR, WITHIN 72

17         HOURS AFTER ENTERING INTO THE CONTRACT, YOU AND

18         YOUR ATHLETE AGENT MUST NOTIFY YOUR ATHLETIC

19         DIRECTOR; AND

20         3.  YOU MAY CANCEL THIS CONTRACT WITHIN 14 DAYS

21         AFTER SIGNING IT. HOWEVER, CANCELLATION OF THIS

22         CONTRACT MAY NOT REINSTATE YOUR ELIGIBILITY.

23  

24         (4)  An agent contract that does not conform to this

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

26  student-athlete voids an agent contract, the student-athlete

27  is not required to pay any consideration or return any

28  consideration received from the athlete agent to induce the

29  student-athlete to enter into the contract.

30  

31  


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

  2  signed or authenticated agent contract to the student-athlete

  3  at the time of execution.

  4         (6)  Within 72 hours after entering into an agent

  5  contract or before the next scheduled athletic event in which

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

  7  the athlete agent must give notice in a record of the

  8  existence of the contract to the athletic director of the

  9  educational institution at which the student-athlete is

10  enrolled or the athlete agent has reasonable grounds to

11  believe the student-athlete intends to enroll.

12         (7)  Within 72 hours after entering into an agent

13  contract or before the next athletic event in which the

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

15  student-athlete must inform the athletic director of the

16  educational institution at which the student-athlete is

17  enrolled that he or she has entered into an agent contract.

18         (8)  A student-athlete may cancel an agent contract by

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

20  record within 14 days after the contract is signed.

21         (9)  A student-athlete may not waive the right to

22  cancel an agent contract.

23         (10)  If a student-athlete cancels an agent contract,

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

25  or return any consideration received from the athlete agent to

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

27         (1)  An athlete agent and a student athlete who enter

28  into an agent contract must provide written notice of the

29  contract to the athletic director or the president of the

30  college or university in which the student athlete is

31  enrolled.  The athlete agent and the student must give the


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  1  notice before the contracting student athlete practices or

  2  participates in any intercollegiate athletic event or within

  3  72 hours after entering into said contract, whichever comes

  4  first. Failure of the athlete agent to provide this

  5  notification is a felony of the third degree, punishable as

  6  provided in ss. 775.082, 775.083, 775.084, 775.089, and

  7  775.091.

  8         (2)  A written contract between a student athlete and

  9  an athlete agent must state the fees and percentages to be

10  paid by the student athlete to the agent and must have a

11  notice printed near the student athlete's signature containing

12  the following statement in 10-point boldfaced type:

13         "WARNING TO THE STUDENT ATHLETE:  WHEN YOU SIGN THIS

14  CONTRACT, YOU WILL LIKELY IMMEDIATELY LOSE YOUR ELIGIBILITY TO

15  COMPETE IN INTERCOLLEGIATE ATHLETICS.  TO AVOID CRIMINAL

16  PROSECUTION YOU MUST GIVE WRITTEN NOTICE THAT YOU HAVE ENTERED

17  INTO THIS CONTRACT TO THE ATHLETIC DIRECTOR OR PRESIDENT OF

18  YOUR COLLEGE OR UNIVERSITY WITHIN 72 HOURS AFTER ENTERING INTO

19  THIS CONTRACT OR PRIOR TO PARTICIPATING IN INTERCOLLEGIATE

20  ATHLETICS, WHICHEVER COMES FIRST. FAILURE TO PROVIDE THIS

21  NOTICE IS A CRIMINAL OFFENSE.  DO NOT SIGN THIS CONTRACT UNTIL

22  YOU HAVE READ IT AND FILLED IN ANY BLANK SPACES.  YOU MAY

23  CANCEL THIS CONTRACT BY NOTIFYING THE ATHLETE AGENT IN WRITING

24  OF YOUR DESIRE TO CANCEL NOT LATER THAN THE 15TH DAY AFTER THE

25  DATE YOU SIGN THIS CONTRACT. HOWEVER, EVEN IF YOU CANCEL THIS

26  CONTRACT, THE INTERCOLLEGIATE ATHLETIC ASSOCIATION OR

27  CONFERENCE TO WHICH YOUR COLLEGE OR UNIVERSITY BELONGS MAY NOT

28  RESTORE YOUR ELIGIBILITY TO PARTICIPATE IN INTERCOLLEGIATE

29  ATHLETICS."

30         (3)  An agent contract which does not meet the

31  requirements of this section is void and unenforceable.


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  1         (4)  Within 15 days after the date the athletic

  2  director or president of the college or university of the

  3  student athlete receives the notice required by this section

  4  that a student athlete has entered into an athlete agent

  5  contract, the student athlete shall have the right to rescind

  6  the contract with the athlete agent by giving written notice

  7  to the athlete agent of the student athlete's rescission of

  8  the contract.  The student athlete may not under any

  9  circumstances waive the student athlete's right to rescind the

10  agent contract.

11         (5)  A postdated agent contract is void and

12  unenforceable.

13         (11)(6)  An athlete agent shall not enter into an agent

14  contract that purports to or takes effect at a future time

15  after the student athlete no longer has remaining eligibility

16  to participate in intercollegiate athletics. Such a contract

17  is void and unenforceable.

18         (12)(7)  An agent contract between a student athlete

19  and a person not licensed under this part is void and

20  unenforceable.

21         Section 4.  Subsection (3) of section 468.456, Florida

22  Statutes, is amended to read:

23         468.456  Prohibited acts.--

24         (3)  When the department finds any person guilty of any

25  of the prohibited acts set forth in subsection (1), the

26  department may enter an order imposing one or more of the

27  penalties provided for in s. 455.227, and an administrative

28  fine not to exceed $25,000 for each separate offense. In

29  addition to any other penalties or disciplinary actions

30  provided for in this part, the department shall suspend or

31  revoke the license of any athlete agent licensed under this


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  1  part who violates paragraph (1)(f) or paragraph (1)(o) or s.

  2  468.45615.

  3         Section 5.  Subsection (4) is added to section

  4  468.45615, Florida Statutes, to read:

  5         468.45615  Provision of illegal inducements to athletes

  6  prohibited; penalties; license suspension.--

  7         (4)(a)  An athlete agent, with the intent to induce a

  8  student-athlete to enter into an agent contract, may not:

  9         1.  Give any materially false or misleading information

10  or make a materially false promise or representation;

11         2.  Furnish anything of value to a student-athlete

12  before the student-athlete enters into the agent contract; or

13         3.  Furnish anything of value to any individual other

14  than the student-athlete or another athlete agent.

15         (b)  An athlete agent may not intentionally:

16         1.  Initiate contact with a student-athlete unless

17  licensed under this part;

18         2.  Refuse or fail to retain or permit inspection of

19  the records required to be retained by s. 468.4565;

20         3.  Provide materially false or misleading information

21  in an application for licensure;

22         4.  Predate or postdate an agent contract;

23         5.  Fail to give notice of the existence of an agent

24  contract as required by s. 468.454(6); or

25         6.  Fail to notify a student-athlete before the

26  student-athlete signs or otherwise authenticates an agent

27  contract for a sport that the signing or authentication may

28  make the student-athlete ineligible to participate as a

29  student-athlete in that sport.

30  

31  


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  1         (c)  An athlete agent who violates this subsection

  2  commits a felony of the second degree, punishable as provided

  3  in s. 775.082, s. 775.083, or s. 775.084.

  4         Section 6.  Section 468.4562, Florida Statutes, is

  5  amended to read:

  6         468.4562  Civil action by institution.--

  7         (1)  A college or university may sue for damages, as

  8  provided by this section, any person who violates this part.

  9  A college or university may seek equitable relief to prevent

10  or minimize harm arising from acts or omissions which are or

11  would be a violation of this part.

12         (2)  For purposes of this section, a college or

13  university is damaged if, because of activities of the person,

14  the college or university is penalized, or is disqualified, or

15  suspended from participation in intercollegiate athletics by a

16  national association for the promotion and regulation of

17  intercollegiate athletics, or by an intercollegiate athletic

18  conference or by reasonable self-imposed disciplinary action

19  taken to mitigate sanctions likely to be imposed by such

20  organization and, because of that penalty, disqualification,

21  or suspension, or action the institution:

22         (a)  Loses revenue from media coverage of a sports

23  contest;

24         (b)  Loses the right to grant an athletic scholarship;

25         (c)  Loses the right to recruit an athlete;

26         (d)  Is prohibited from participating in postseason

27  athletic competition;

28         (e)  Forfeits an athletic contest; or

29         (f)  Otherwise suffers an adverse financial impact.

30         (3)  An institution that prevails in a suit brought

31  under this section may recover:


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  1         (a)  Actual damages;

  2         (b)  Punitive damages;

  3         (c)  Treble damages;

  4         (d)  Court costs; and

  5         (e)  Reasonable attorney's fees.

  6         (4)  A right of action under this section does not

  7  accrue until the educational institution discovers or by the

  8  exercise of reasonable diligence would have discovered the

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

10         (5)  Any liability of the athlete agent or the former

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

12         (6)  This part does not restrict rights, remedies, or

13  defenses of any person under law or equity.

14         Section 7.  Subsection (1) of section 468.4565, Florida

15  Statutes, is amended to read:

16         468.4565  Business records requirement.--

17         (1)  An athlete agent who holds an active license and

18  engages in business as an athlete agent shall establish and

19  maintain complete financial and business records.  The athlete

20  agent shall save each entry into a financial or business

21  record for at least 5 4 years from the date of entry. These

22  records must include, but shall not be limited to:

23         (a)  The name and address of each individual

24  represented by the athlete agent;

25         (b)  Any agent contract entered into by the athlete

26  agent; and

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

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

29  into an agent contract.

30         Section 8.  Sections 468.4563 and 468.4564, Florida

31  Statutes, are repealed.


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  1         Section 9.  This act shall take effect July 1, 2001.

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