Florida Senate - 2012                                     SB 630
       
       
       
       By Senator Norman
       
       
       
       
       12-00275-12                                            2012630__
    1                        A bill to be entitled                      
    2         An act relating to athlete agents; amending s.
    3         468.452, F.S.; revising the definition for the term
    4         “athlete agent”; defining the term “national
    5         professional sports association”; amending s. 468.453,
    6         F.S.; requiring that an individual who practices as an
    7         athlete agent be licensed as a professional athlete
    8         agent or limited athlete agent by the Department of
    9         Business and Professional Regulation; prohibiting a
   10         person who is not an individual from practicing as an
   11         athlete agent; requiring that a professional athlete
   12         agent be certified as an agent by a national
   13         professional sports association; providing that an
   14         individual who is not certified as an agent by a
   15         national professional sports association may be
   16         licensed only as a limited athlete agent; requiring
   17         that a licensed athlete agent notify the department in
   18         writing of the agent’s conviction of a crime or
   19         decertification as an agent by a national professional
   20         sports association within a specified period;
   21         requiring that the department revoke the license of an
   22         athlete agent who has been convicted of a crime or
   23         decertified by a national professional sports
   24         association; amending s. 468.454, F.S.; providing that
   25         an agent contract may conform to the form approved by
   26         a national professional sports association for the
   27         sport in which the student athlete will be represented
   28         under certain circumstances; providing that an agent
   29         contract with a student athlete in a sport for which
   30         there is a national professional sports association is
   31         void if negotiated by an agent holding a limited
   32         license; creating s. 468.4542, F.S.; requiring that an
   33         athlete agent deposit a surety bond with the
   34         department before contacting an athlete or entering
   35         into an agent contract or contract for financial
   36         services with a student athlete under certain
   37         conditions; requiring that the athlete agent maintain
   38         a bond for at least 2 years after the athlete agent
   39         ceases providing financial services or after the
   40         athlete agent’s license expires or is revoked;
   41         amending s. 468.456, F.S.; prohibiting an athlete
   42         agent from offering or furnishing anything of value to
   43         a student athlete or an individual related to the
   44         student athlete before the student completes his or
   45         her last intercollegiate sports contest; prohibiting
   46         an athlete agent from committing an act or causing a
   47         person to commit an act on the agent’s behalf which
   48         causes a student athlete to violate a rule of a
   49         national professional sports association under certain
   50         circumstances; providing for an increase in
   51         administrative penalties for certain violations;
   52         authorizing the department to revoke, refuse to renew,
   53         or refuse to issue an athlete agent’s license if the
   54         agent fails to pay an administrative penalty; amending
   55         s. 468.45615, F.S.; providing that an athlete agent
   56         who offers or furnishes anything of value to a student
   57         athlete or an individual related to the student
   58         athlete before the student completes his or her last
   59         intercollegiate sports contest commits a felony of the
   60         third degree; requiring that the department send a
   61         notice of an athlete agent’s conviction of an offense
   62         to each national professional sports association that
   63         has certified the agent; amending s. 468.4562, F.S.;
   64         authorizing a student athlete to sue for damages under
   65         certain circumstances; creating s. 468.45625, F.S.;
   66         requiring that the department publish on its Internet
   67         website information prescribing the responsibilities
   68         of colleges and universities under part IX, ch. 468,
   69         F.S.; requiring that the department notify the
   70         athletic director or other appropriate official of
   71         each college or university of any changes to the
   72         responsibilities; amending s. 468.4565, F.S.; revising
   73         provisions relating to an athlete agent’s financial
   74         and business records; requiring that the records
   75         contain the telephone number of each individual
   76         represented by the athlete agent and the name and
   77         address of each national professional sports
   78         association that certifies the athlete agent;
   79         providing an effective date.
   80  
   81  Be It Enacted by the Legislature of the State of Florida:
   82  
   83         Section 1. Section 468.452, Florida Statutes, is amended to
   84  read:
   85         468.452 Definitions.—For purposes of this part, the term:
   86         (1) “Agent contract” means a contract or agreement in which
   87  a student athlete authorizes an athlete agent to represent the
   88  student in the marketing of the student’s athletic ability or
   89  athletic reputation.
   90         (2) “Athlete agent” means an individual a person who,
   91  directly or indirectly, recruits or solicits a student athlete
   92  to enter into an agent contract, or who, for any type of
   93  financial gain, procures, offers, promises, or attempts to
   94  obtain employment or promotional fees or benefits for a student
   95  athlete with a professional sports team or as a professional
   96  athlete, or with any promoter who markets or attempts to market
   97  the student athlete’s athletic ability or athletic reputation.
   98  This term includes all employees and other persons acting on
   99  behalf of an athlete agent who participate in the activities
  100  included under this subsection. The term does not include a
  101  spouse, parent, sibling, grandparent, or guardian of the student
  102  athlete or an individual acting solely on behalf of a
  103  professional sports team or professional sports organization.
  104         (3) “Contact” means communication between an athlete agent
  105  and a student athlete, by whatever means, directly or
  106  indirectly, for the purpose of entering or soliciting entry into
  107  an agent contract.
  108         (4) “Department” means the Department of Business and
  109  Professional Regulation.
  110         (5) “Student athlete” means any student who:
  111         (a) Resides in Florida, has informed, in writing, a college
  112  or university of the student’s intent to participate in that
  113  school’s intercollegiate athletics, or who does participate in
  114  that school’s intercollegiate athletics and is eligible to do
  115  so; or
  116         (b) Does not reside in Florida, but has informed, in
  117  writing, a college or university in Florida of the student’s
  118  intent to participate in that school’s intercollegiate
  119  athletics, or who does participate in that school’s
  120  intercollegiate athletics and is eligible to do so.
  121         (5)(6) “Financial services” means the counseling on or the
  122  making or execution of investment and other financial decisions
  123  by the agent on behalf of the student athlete.
  124         (6) “National professional sports association” means an
  125  organization that certifies athlete agents to represent athletes
  126  in a particular professional sport. The term includes the
  127  National Football League Players Association, National
  128  Basketball Players Association, Major League Baseball Players
  129  Association, National Hockey League Players’ Association, and
  130  the United States Soccer Federation.
  131         (7) “Participation” means practicing, competing, or
  132  otherwise representing a college or university in
  133  intercollegiate athletics.
  134         (8) “Student athlete” means any student who:
  135         (a) Resides in Florida, has informed, in writing, a college
  136  or university of the student’s intent to participate in that
  137  school’s intercollegiate athletics, or who does participate in
  138  that school’s intercollegiate athletics and is eligible to do
  139  so; or
  140         (b) Does not reside in Florida, but has informed, in
  141  writing, a college or university in Florida of the student’s
  142  intent to participate in that school’s intercollegiate
  143  athletics, or who does participate in that school’s
  144  intercollegiate athletics and is eligible to do so.
  145         Section 2. Section 468.453, Florida Statutes, is amended to
  146  read:
  147         468.453 Licensure required; qualifications; license
  148  nontransferable; service of process; temporary license; license
  149  or application from another state; notice of conviction or
  150  decertification.—
  151         (1) Any individual person who practices as an athlete agent
  152  in this state must be licensed pursuant to this part as:
  153         (a) A professional athlete agent; or
  154         (b) A limited athlete agent.
  155         (2) A person who is not an individual may not practice as
  156  an athlete agent in this state.
  157         (3)(2)An individual A person shall be licensed as a
  158  professional an athlete agent if the applicant:
  159         (a) Is at least 18 years of age.
  160         (b) Is of good moral character.
  161         (c) Is certified as an agent by a national professional
  162  sports association.
  163         (d)(c) Has completed the application form and remitted an
  164  application fee not to exceed $500, an active licensure fee not
  165  to exceed $2,000, and all other applicable fees provided for in
  166  this part or in chapter 455.
  167         (e)(d) Has submitted to the department a fingerprint card
  168  for a criminal history records check. The fingerprint card shall
  169  be forwarded to the Division of Criminal Justice Information
  170  Systems within the Department of Law Enforcement for purposes of
  171  processing the fingerprint card to determine if the applicant
  172  has a criminal history record. The fingerprint card shall also
  173  be forwarded to the Federal Bureau of Investigation for purposes
  174  of processing the fingerprint card to determine if the applicant
  175  has a criminal history record. The information obtained by the
  176  processing of the fingerprint card by the Florida Department of
  177  Law Enforcement and the Federal Bureau of Investigation shall be
  178  sent to the department for the purpose of determining if the
  179  applicant is statutorily qualified for licensure.
  180         (f)(e) Has not in any jurisdiction, within the preceding 5
  181  years, been convicted or found guilty of or entered a plea of
  182  nolo contendere for, regardless of adjudication, a crime which
  183  relates to the applicant’s practice or ability to practice as an
  184  athlete agent.
  185         (4) An individual who is not certified as an agent by a
  186  national professional sports association may be licensed only as
  187  a limited athlete agent. A limited athlete agent may represent a
  188  student athlete only in a sport that is not affiliated with a
  189  national professional sports association.
  190         (5)(3) An unlicensed individual may act as an athlete agent
  191  if:
  192         (a) A student athlete or person acting on the athlete’s
  193  behalf initiates communication with the individual; and
  194         (b) Within 7 days after an initial act as an athlete agent,
  195  the individual submits an application for licensure.
  196         (6)(4) A license issued to an athlete agent is not
  197  transferable.
  198         (7)(5) By acting as an athlete agent in this state, a
  199  nonresident individual appoints the department as the
  200  individual’s agent for service of process in any civil action
  201  related to the individual’s acting as an athlete agent.
  202         (8)(6) The department may issue a temporary license while
  203  an application for licensure is pending. If the department
  204  issues a notice of intent to deny the license application, the
  205  initial temporary license expires and may not be extended during
  206  any proceeding or administrative or judicial review.
  207         (9)(7)(a) An individual who has submitted an application
  208  and holds a certificate, registration, or license as an athlete
  209  agent in another state may submit a copy of the application and
  210  certificate, registration, or license from the other state in
  211  lieu of submitting an application in the form prescribed
  212  pursuant to this section. The department must accept the
  213  application and the certificate from the other state as an
  214  application for registration in this state if the application in
  215  the other state:
  216         1. Was submitted in the other state within 6 months next
  217  preceding the submission of the application in this state and
  218  the applicant certifies that the information contained in the
  219  application is current;
  220         2. Contains information substantially similar to or more
  221  comprehensive than that required in an application submitted in
  222  this state; and
  223         3. Was signed by the applicant under penalty of perjury.
  224         (b) An applicant applying under this subsection must meet
  225  all other requirements for licensure as provided by this part.
  226         (10)(a)A licensed athlete agent shall notify the
  227  department in writing of the athlete agent’s:
  228         1. Conviction of a crime; or
  229         2. Decertification as an athlete agent by a national
  230  professional sports association which has become final following
  231  the conclusion of the appeals process.
  232         (b) An athlete agent shall notify the department within 30
  233  days after the date upon which the athlete agent is convicted of
  234  a crime or 30 days after the date upon which decertification
  235  becomes final.
  236         (c) The department shall revoke the license of an athlete
  237  agent who has been convicted of a crime or decertified by a
  238  national professional sports association.
  239         Section 3. Subsections (4) and (12) of section 468.454,
  240  Florida Statutes, are amended to read:
  241         468.454 Contracts.—
  242         (4) An agent contract that does not conform to this section
  243  is voidable by the student athlete. However, an agent contract
  244  may conform to the form approved by a national professional
  245  sports association for the sport in which the student athlete
  246  will be represented if an athlete agent is certified by the
  247  national professional sports association. If a student athlete
  248  voids an agent contract, the student athlete is not required to
  249  pay any consideration or return any consideration received from
  250  the athlete agent to induce the student athlete to enter into
  251  the contract.
  252         (12) An agent contract between a student athlete and an
  253  individual a person not licensed under this part is void and
  254  unenforceable. An agent contract with a student athlete in a
  255  sport for which there is a national professional sports
  256  association is void if the contract is negotiated by an athlete
  257  agent holding a limited license.
  258         Section 4. Section 468.4542, Florida Statutes, is created
  259  to read:
  260         468.4542 Bond requirements.—
  261         (1) Before contacting a student athlete or entering into an
  262  agent contract with a student athlete in this state, an athlete
  263  agent shall deposit a surety bond with the department in the
  264  amount of $50,000, payable to the state and conditioned on:
  265         (a) The athlete agent complying with this part;
  266         (b) The payment of any administrative penalty; and
  267         (c) The payment of any damages awarded to a college or
  268  university or a student athlete as a result of the athlete agent
  269  offering or furnishing a thing of value to a student athlete or
  270  a family member of the athlete.
  271         (2) Before entering into a contract for financial services
  272  with an athlete, an athlete agent shall deposit a surety bond
  273  with the department in the amount of $100,000, payable to the
  274  state and conditioned on:
  275         (a) The athlete agent complying with this part;
  276         (b) The payment of money owed to an individual or group of
  277  individuals when the athlete agent or the athlete agent’s
  278  representative or employee receives the money; and
  279         (c) The payment of damages to a student athlete caused by
  280  the intentional misrepresentation, fraud, deceit, or unlawful or
  281  negligent act or omission of the athlete agent or of the athlete
  282  agent’s representative or employee while acting within the scope
  283  of a contract for financial services.
  284         (3) An athlete agent shall maintain a bond deposited with
  285  the department for at least 2 years after the date upon which
  286  the athlete agent ceases to provide financial services to a
  287  student athlete or the date upon which the athlete agent’s
  288  license expires or is revoked.
  289         Section 5. Subsections (1) and (3) of section 468.456,
  290  Florida Statutes, are amended, and subsection (4) is added to
  291  that section, to read:
  292         468.456 Prohibited acts.—
  293         (1) The following acts are shall be grounds for the
  294  disciplinary actions provided for in subsection (3):
  295         (a) A violation of any law relating to the practice as an
  296  athlete agent including, but not limited to, violations of this
  297  part and chapter 455 and any rules adopted promulgated
  298  thereunder.
  299         (b) Failure to account for or to pay, within a reasonable
  300  time, not to exceed 30 days, assets belonging to another which
  301  have come into the control of the athlete agent in the course of
  302  conducting business as an athlete agent.
  303         (c) Any conduct as an athlete agent which demonstrates bad
  304  faith or dishonesty.
  305         (d) Commingling money or property of another person with
  306  the athlete agent’s money or property. Every athlete agent shall
  307  maintain a separate trust or escrow account in an insured bank
  308  or savings and loan association located in this state in which
  309  shall be deposited all proceeds received for another person
  310  through the athlete agent.
  311         (e) Accepting as a client a student athlete referred by and
  312  in exchange for any consideration made to an employee of or a
  313  coach for a college or university located in this state.
  314         (f) Before a student athlete completes his or her last
  315  intercollegiate sports contest, offering anything of value to
  316  the student athlete or an individual related to the student
  317  athlete within the second degree by affinity or consanguinity
  318  any person to induce a student athlete to enter into an
  319  agreement by which the agent will represent the student athlete.
  320  However, negotiations regarding the agent’s fee are shall not be
  321  considered an inducement.
  322         (g) Before a student athlete completes his or her last
  323  intercollegiate sports contest, furnishing anything of value to
  324  the student athlete or an individual related to the student
  325  athlete within the second degree by affinity or consanguinity.
  326         (h)(g) Knowingly providing financial benefit from the
  327  licensee’s conduct of business as an athlete agent to another
  328  athlete agent whose license to practice as an athlete agent is
  329  suspended or has been permanently revoked within the previous 5
  330  years.
  331         (i)(h) Committing mismanagement or misconduct as an athlete
  332  agent which causes financial harm to a student athlete or
  333  college or university.
  334         (j)(i) Failing to include the athlete agent’s name and
  335  license number in any advertising related to the business of an
  336  athlete agent. Advertising does shall not include clothing or
  337  other novelty items.
  338         (k)(j) Publishing or causing to be published false or
  339  misleading information or advertisements, or giving any false
  340  information or making false promises to a student athlete
  341  concerning employment or financial services.
  342         (l)(k) Violating or aiding and abetting another person to
  343  violate the rules of the athletic conference or collegiate
  344  athletic association governing a student athlete or student
  345  athlete’s college or university.
  346         (m)(l) Having contact, as prohibited by this part, with a
  347  student athlete.
  348         (n)(m) Postdating agent contracts.
  349         (o)(n) Having an athlete agent certification acted against
  350  by a professional athletic club or association.
  351         (p)(o) Being employed to illegally recruit or solicit
  352  student athletes by being used utilized by or otherwise
  353  collaborating with a person known to have been convicted or
  354  found guilty of, or to have entered a plea of nolo contendere
  355  to, a violation of s. 468.45615, regardless of adjudication.
  356         (q) Committing an act or causing a person to commit an act
  357  on the athlete agent’s behalf which causes a student athlete to
  358  violate a rule of the national professional sports association
  359  for the promotion and regulation of intercollegiate athletics of
  360  which the student athlete’s college or university is a member.
  361         (3) When the department finds any person guilty of any of
  362  the prohibited acts set forth in subsection (1), the department
  363  may enter an order imposing one or more of the penalties
  364  provided for in s. 455.227, and an administrative fine not to
  365  exceed $50,000 for a violation under paragraph (1)(g) or
  366  paragraph (1)(q) or an administrative fine not to exceed $25,000
  367  for any other each separate offense. In addition to any other
  368  penalties or disciplinary actions provided for in this part, the
  369  department shall suspend or revoke the license of any athlete
  370  agent licensed under this part who violates paragraph (1)(f) or
  371  paragraph (1)(p) (1)(o) or s. 468.45615.
  372         (4)If an athlete agent fails to pay an administrative
  373  penalty, the department may revoke, refuse to renew, or refuse
  374  to issue the athlete agent’s license.
  375         Section 6. Subsection (1) of section 468.45615, Florida
  376  Statutes, is amended, and subsection (5) is added to that
  377  section, to read:
  378         468.45615 Provision of illegal inducements to athletes
  379  prohibited; penalties; license suspension.—
  380         (1)(a) Any person who violates s. 468.456(1)(f) commits is
  381  guilty of a felony of the second degree, punishable as provided
  382  in s. 775.082, s. 775.083, s. 775.084, s. 775.089, or s.
  383  775.091.
  384         (b)Any person who intentionally or knowingly violates s.
  385  468.456(1)(g) or (1)(q) commits a felony of the third degree,
  386  punishable as provided in s. 775.082, s. 775.083, s. 775.084, s.
  387  775.089, or s. 775.091.
  388         (5) The department shall send a notice of an athlete
  389  agent’s conviction of an offense under this section to each
  390  national professional sports association that certifies the
  391  athlete agent.
  392         Section 7. Section 468.4562, Florida Statutes, is amended
  393  to read:
  394         468.4562 Civil action by a college or university or student
  395  athlete institution.—
  396         (1) A college or university or a student athlete may sue
  397  for damages, as provided by this section, any person who
  398  violates this part. A college or university or a student athlete
  399  may seek equitable relief to prevent or minimize harm arising
  400  from acts or omissions that which are or would be a violation of
  401  this part.
  402         (2)(a) For purposes of this section, a college or
  403  university is damaged if, because of activities of the person,
  404  the college or university is penalized, disqualified, or
  405  suspended from participation in intercollegiate athletics by a
  406  national association for the promotion and regulation of
  407  intercollegiate athletics, by an intercollegiate athletic
  408  conference, or by reasonable self-imposed disciplinary action
  409  taken to mitigate sanctions likely to be imposed by such
  410  organization and, because of that penalty, disqualification,
  411  suspension, or action the institution:
  412         1.(a) Loses revenue from media coverage of a sports
  413  contest;
  414         2.(b) Loses the right to grant an athletic scholarship;
  415         3.(c) Loses the right to recruit an athlete;
  416         4.(d) Is prohibited from participating in postseason
  417  athletic competition;
  418         5.(e) Forfeits an athletic contest; or
  419         6.(f) Otherwise suffers an adverse financial impact.
  420         (b) A student athlete is damaged if:
  421         1. The athlete agent’s violation causes a national
  422  association for the promotion and regulation of intercollegiate
  423  athletics to disqualify or suspend the student athlete from
  424  participating in intercollegiate sports contests; and
  425         2. The disqualification or suspension of the student
  426  athlete causes the student athlete to suffer an adverse
  427  financial impact.
  428         (3) A plaintiff An institution that prevails in a suit
  429  brought under this section may recover:
  430         (a) Actual damages;
  431         (b) Punitive damages;
  432         (c) Treble damages;
  433         (d) Court costs; and
  434         (e) Reasonable attorney attorney’s fees.
  435         (4) A right of action under this section does not accrue
  436  until the plaintiff educational institution discovers, or by the
  437  exercise of reasonable diligence would have discovered, the
  438  violation by the athlete agent or former student athlete.
  439         (5) Any liability of the athlete agent or the former
  440  student athlete under this section is several and not joint.
  441         (6) This part does not restrict rights, remedies, or
  442  defenses of any person under law or equity.
  443         Section 8. Section 468.45625, Florida Statutes, is created
  444  to read:
  445         468.45625 Publication of responsibilities; colleges and
  446  universities.—
  447         (1) The department shall publish on its Internet website
  448  information prescribing the responsibilities of a college or
  449  university under this part.
  450         (2) The department shall notify the athletic director or
  451  other appropriate official of each college or university if
  452  there are any changes to the responsibilities.
  453         Section 9. Subsection (1) of section 468.4565, Florida
  454  Statutes, is amended to read:
  455         468.4565 Business records requirement.—
  456         (1) An athlete agent shall establish and maintain complete
  457  financial and business records. The athlete agent shall save
  458  each entry into a financial or business record for at least 5
  459  years from the date of entry. These records must include:
  460         (a) The name, and address, and telephone number of each
  461  individual represented by the athlete agent;
  462         (b) Any agent contract or contract for financial services
  463  entered into by the athlete agent; and
  464         (c) Any direct costs incurred by the athlete agent in the
  465  recruitment or solicitation of a student athlete to enter into
  466  an agent contract or contract for financial services; and.
  467         (d) The name and address of each national professional
  468  sports association that currently certifies the athlete agent.
  469         Section 10. This act shall take effect July 1, 2012.