House Bill hb0179c1

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    Florida House of Representatives - 2002              CS/HB 179

        By the Council for Smarter Government and Representatives
    Benson, Bense, Harrell, Lynn, Kendrick and Trovillion





  1                      A bill to be entitled

  2         An act relating to athlete agents; amending s.

  3         468.452, F.S.; redefining the term "athlete

  4         agent"; amending s. 468.453, F.S.; revising

  5         licensure requirements; providing for service

  6         of process on nonresident agents; providing for

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

  8         revising 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, F.S., 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

  8  persons acting on behalf of an athlete agent who participate

  9  in the activities included under this subsection.  The term

10  does not include a spouse, parent, sibling, grandparent, or

11  guardian of the student athlete or an individual acting solely

12  on behalf 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; service

18  of process; temporary license.--

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

20  this state must be licensed pursuant to this part.

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

22  the applicant:

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

24         (b)  Is of good moral character.

25         (c)  Passes an examination provided by the department

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

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

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

29  part, and chapter 455.

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

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

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

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

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

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

  5  card for a criminal history records check. The fingerprint

  6  card shall be forwarded to the Division of Criminal Justice

  7  Information Systems within the Department of Law Enforcement

  8  for purposes of processing the fingerprint card to determine

  9  if the applicant has a criminal history record. The

10  fingerprint card shall also be forwarded to the Federal Bureau

11  of Investigation for purposes of processing the fingerprint

12  card to determine if the applicant has a criminal history

13  record. The information obtained by the processing of the

14  fingerprint card by the Florida Department of Law Enforcement

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

16  department for the purpose of determining if the applicant is

17  statutorily qualified for licensure.

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

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

20  entered a plea of nolo contendere for, regardless of

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

22  practice or ability to practice as an athlete agent.

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

24  bond issued by an insurance company authorized to do business

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

26  Florida, Department of Business and Professional Regulation,

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

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

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

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

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

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

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

  3  representatives acting under the athlete agent's supervision

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

  5  times that the athlete agent has an active license and

  6  conducts business pursuant to that license in this or any

  7  other state.

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

  9  agent if:

10         (a)  A student athlete or person acting on the

11  athlete's behalf initiates communication with the individual;

12  and

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

14  agent, the individual submits an application for licensure.

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

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

17  required by this section.

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

19  transferable.

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

21  nonresident individual appoints the department as the

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

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

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

25  an application for licensure is pending.  If the department

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

27  initial temporary license expires and may not be extended

28  during any proceeding or administrative or judicial review.

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

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

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

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  1  application and certificate, registration, or license from the

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

  3  prescribed pursuant to this section.  The department must

  4  accept the application and the certificate, registration, or

  5  license from the other state as an application for

  6  registration in this state if the application in the other

  7  state:

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

  9  months preceding the submission of the application in this

10  state and the applicant certifies that the information

11  contained in the application is current;

12         2.  Contains information substantially similar to or

13  more comprehensive than that required in an application

14  submitted in this state; and

15         3.  Was signed by the applicant under penalty of

16  perjury.

17         (b)  An applicant applying under this subsection must

18  meet all other requirements for licensure as provided by this

19  part.

20         Section 3.  Section 468.454, Florida Statutes, is

21  amended to read:

22         468.454  Contracts.--

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

24  otherwise authenticated by the parties.

25         (2)  An agent contract must state:

26         (a)  The amount and method of calculating the

27  consideration to be paid by the student athlete for services

28  to be provided by the athlete agent and any other

29  consideration the agent has received or will receive from any

30  other source under the contract;

31

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

  2  application who will be compensated because the student

  3  athlete signed the agent contract;

  4         (c)  A description of any expenses that the student

  5  athlete agrees to reimburse;

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

  7  the student athlete;

  8         (e)  The duration of the contract; and

  9         (f)  The date of execution of the contract.

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

11  to the signature of the student athlete, a conspicuous notice

12  in boldface type in capital letters stating:

13

14                    WARNING TO STUDENT ATHLETE

15

16         IF YOU SIGN THE CONTRACT:

17         1.  YOU MAY LOSE YOUR ELIGIBILITY TO COMPETE AS

18         A STUDENT ATHLETE IN YOUR SPORT;

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

20         HOURS AFTER ENTERING INTO THE CONTRACT, YOU AND

21         YOUR ATHLETE AGENT MUST NOTIFY YOUR ATHLETIC

22         DIRECTOR; AND

23         3.  YOU MAY CANCEL THIS CONTRACT WITHIN 14 DAYS

24         AFTER SIGNING IT. HOWEVER, CANCELLATION OF THIS

25         CONTRACT MAY NOT REINSTATE YOUR ELIGIBILITY.

26

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

28  section is voidable by the student athlete.  If a student

29  athlete voids an agent contract, the student athlete is not

30  required to pay any consideration or return any consideration

31

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  1  received from the athlete agent to induce the student athlete

  2  to enter into the contract.

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

  4  signed or authenticated agent contract to the student athlete

  5  at the time of execution of the contract.

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

  7  contract or before the next scheduled athletic event in which

  8  the student athlete may participate, whichever occurs first,

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

10  existence of the contract to the athletic director of the

11  educational institution at which the student athlete is

12  enrolled or the athlete agent has reasonable grounds to

13  believe the student athlete intends to enroll.

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

15  contract or before the next athletic event in which the

16  student athlete may participate, whichever occurs first, the

17  student athlete must inform the athletic director of the

18  educational institution at which the student athlete is

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

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

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

22  record within 14 days after the contract is signed.

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

24  cancel an agent contract.

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

26  the student athlete is not required to pay any consideration

27  or return any consideration received from the athlete agent to

28  induce the student athlete to enter into the contract.

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

30  into an agent contract must provide written notice of the

31  contract to the athletic director or the president of the

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  1  college or university in which the student athlete is

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

  3  notice before the contracting student athlete practices or

  4  participates in any intercollegiate athletic event or within

  5  72 hours after entering into said contract, whichever comes

  6  first. Failure of the athlete agent to provide this

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

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

  9  775.091.

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

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

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

13  notice printed near the student athlete's signature containing

14  the following statement in 10-point boldfaced type:

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

16  CONTRACT, YOU WILL LIKELY IMMEDIATELY LOSE YOUR ELIGIBILITY TO

17  COMPETE IN INTERCOLLEGIATE ATHLETICS.  TO AVOID CRIMINAL

18  PROSECUTION YOU MUST GIVE WRITTEN NOTICE THAT YOU HAVE ENTERED

19  INTO THIS CONTRACT TO THE ATHLETIC DIRECTOR OR PRESIDENT OF

20  YOUR COLLEGE OR UNIVERSITY WITHIN 72 HOURS AFTER ENTERING INTO

21  THIS CONTRACT OR PRIOR TO PARTICIPATING IN INTERCOLLEGIATE

22  ATHLETICS, WHICHEVER COMES FIRST. FAILURE TO PROVIDE THIS

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

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

25  CANCEL THIS CONTRACT BY NOTIFYING THE ATHLETE AGENT IN WRITING

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

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

28  CONTRACT, THE INTERCOLLEGIATE ATHLETIC ASSOCIATION OR

29  CONFERENCE TO WHICH YOUR COLLEGE OR UNIVERSITY BELONGS MAY NOT

30  RESTORE YOUR ELIGIBILITY TO PARTICIPATE IN INTERCOLLEGIATE

31  ATHLETICS."

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

  2  requirements of this section is void and unenforceable.

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

  4  director or president of the college or university of the

  5  student athlete receives the notice required by this section

  6  that a student athlete has entered into an athlete agent

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

  8  the contract with the athlete agent by giving written notice

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

10  the contract.  The student athlete may not under any

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

12  agent contract.

13         (5)  A postdated agent contract is void and

14  unenforceable.

15         (11)(6)  An athlete agent shall not enter into an agent

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

17  after the student athlete no longer has remaining eligibility

18  to participate in intercollegiate athletics. Such a contract

19  is void and unenforceable.

20         (12)(7)  An agent contract between a student athlete

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

22  unenforceable.

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

24  Statutes, is amended to read:

25         468.456  Prohibited acts.--

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

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

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

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

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

31  addition to any other penalties or disciplinary actions

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

  2  revoke the license of any athlete agent licensed under this

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

  4  468.45615.

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

  6  468.45615, Florida Statutes, to read:

  7         468.45615  Provision of illegal inducements to athletes

  8  prohibited; penalties; license suspension.--

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

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

11         1.  Give any materially false or misleading information

12  or make a materially false promise or representation;

13         2.  Furnish anything of value to a student athlete

14  before the student athlete enters into the agent contract; or

15         3.  Furnish anything of value to any individual other

16  than the student athlete or another athlete agent.

17         (b)  An athlete agent may not intentionally:

18         1.  Initiate contact with a student athlete unless

19  licensed under this part;

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

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

22         3.  Provide materially false or misleading information

23  in an application for licensure;

24         4.  Predate or postdate an agent contract;

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

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

27         6.  Fail to notify a student athlete before the student

28  athlete signs or otherwise authenticates an agent contract for

29  a sport that the signing or authentication may make the

30  student athlete ineligible to participate as a student athlete

31  in that sport.

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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:

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, 2002.

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