PRINTER'S NO. 3411
No. 2411 Session of 2002
INTRODUCED BY HERMAN, BENNINGHOFF, ADOLPH, ALLEN, M. BAKER,
CAPPELLI, CLYMER, COLAFELLA, CORRIGAN, COSTA, COY, CREIGHTON,
CURRY, DALLY, J. EVANS, FAIRCHILD, FICHTER, FLICK, GEORGE,
GODSHALL, GRUCELA, HARHAI, HENNESSEY, HERSHEY, MANN,
MICHLOVIC, R. MILLER, NAILOR, SAINATO, SATHER, SAYLOR,
SCHULER, SHANER, B. SMITH, STABACK, TANGRETTI, TRELLO, TRICH,
WILT, G. WRIGHT, YUDICHAK AND TURZAI, MARCH 13, 2002
REFERRED TO COMMITTEE ON PROFESSIONAL LICENSURE, MARCH 13, 2002
AN ACT
1 Establishing requirements for persons acting as agents for
2 athletes; and providing for licensure requirements, for power
3 and duty of the Secretary of the Commonwealth and for civil
4 and criminal penalties.
5 TABLE OF CONTENTS
6 Section 1. Short title.
7 Section 2. Definitions.
8 Section 3. Service of process and subpoenas.
9 Section 4. Registration required and void contracts.
10 Section 5. Registration as athlete agent, form and
11 requirements.
12 Section 6. Certificate of registration, issuance or denial and
13 renewal.
14 Section 7. Suspension, revocation or refusal to renew
15 registration.
16 Section 8. Temporary registration.
1 Section 9. Registration and renewal fees.
2 Section 10. Required form of contract.
3 Section 11. Notice to educational institution.
4 Section 12. Student athlete's right to cancel.
5 Section 13. Required records.
6 Section 14. Prohibited conduct.
7 Section 15. Criminal penalties.
8 Section 16. Civil remedies.
9 Section 17. Administrative penalty.
10 Section 18. Uniformity of application and construction.
11 Section 19. Electronic Signatures in Global and National
12 Commerce Act.
13 Section 20. Severability.
14 Section 21. Effective date.
15 The General Assembly of the Commonwealth of Pennsylvania
16 hereby enacts as follows:
17 Section 1. Short title.
18 This act shall be known and may be cited as the Uniform
19 Athlete Agents Act.
20 Section 2. Definitions.
21 The following words and phrases when used in this act shall
22 have the meanings given to them in this section unless the
23 context clearly indicates otherwise:
24 "Agency contract." An agreement in which a student athlete
25 authorizes a person to negotiate or solicit on behalf of the
26 student athlete a professional sports-services contract or an
27 endorsement contract.
28 "Athlete agent." An individual who enters into an agency
29 contract with a student athlete or, directly or indirectly,
30 recruits or solicits a student athlete to enter into an agency
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1 contract. The term includes an individual who represents to the
2 public that the individual is an athlete agent. The term does
3 not include a spouse, parent, sibling, grandparent or guardian
4 of the student athlete or an individual acting solely on behalf
5 of a professional sports team or professional sports
6 organization.
7 "Athletic director." An individual responsible for
8 administering the overall athletic program of an educational
9 institution or, if an educational institution has separately
10 administered athletic programs for male students and female
11 students, the athletic program for males or the athletic program
12 for females, as appropriate.
13 "Contact." A communication, direct or indirect, between an
14 athlete agent and a student athlete to recruit or solicit the
15 student athlete to enter into an agency contract.
16 "Endorsement contract." An agreement under which a student
17 athlete is employed or receives consideration to use on behalf
18 of the other party any value that the student athlete may have
19 because of publicity, reputation, following or fame obtained
20 because of athletic ability or performance.
21 "Intercollegiate sport." A sport played at the collegiate
22 level for which eligibility requirements for participation by a
23 student athlete are established by a national association for
24 the promotion or regulation of collegiate athletics.
25 "Person." An individual, corporation, business trust,
26 estate, trust, partnership, limited liability company,
27 association, joint venture, government, governmental
28 subdivision, agency or instrumentality, public corporation or
29 any other legal or commercial entity.
30 "Professional sports-services contract." An agreement under
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1 which an individual is employed or agrees to render services as
2 a player on a professional sports team, with a professional
3 sports organization or as a professional athlete.
4 "Record." Information that is inscribed on a tangible medium
5 or that is stored in an electronic or other medium and is
6 retrievable in perceivable form.
7 "Registration." Registration as an athlete agent pursuant to
8 this act.
9 "Secretary." The Secretary of the Commonwealth.
10 "State." A state of the United States, the District of
11 Columbia, Puerto Rico, the United States Virgin Islands or any
12 territory or insular possession subject to the jurisdiction of
13 the United States.
14 "Student athlete." An individual who engages in, is eligible
15 to engage in or may be eligible in the future to engage in any
16 intercollegiate sport. If an individual is permanently
17 ineligible to participate in a particular intercollegiate sport,
18 the individual is not a student athlete for purposes of that
19 sport.
20 Section 3. Service of process and subpoenas.
21 (a) Service of process.--By acting as an athlete agent in
22 this Commonwealth, a nonresident individual appoints the
23 secretary as the individual's agent for service of process in
24 any civil action in this Commonwealth related to the
25 individual's acting as an athlete agent in this Commonwealth.
26 (b) Subpoenas.--The secretary may issue subpoenas for any
27 material that is relevant to the administration of this act.
28 Section 4. Registration required and void contracts.
29 (a) Certificate of registration required.--Except as
30 otherwise provided in subsection (b), an individual may not act
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1 as an athlete agent in this Commonwealth without holding a
2 certificate of registration under section 6 or 8.
3 (b) Exceptions.--Before being issued a certificate of
4 registration, an individual may act as an athlete agent in this
5 Commonwealth for all purposes except signing an agency contract,
6 if:
7 (1) a student athlete or another person acting on behalf
8 of the student athlete initiates communication with the
9 individual; and
10 (2) within seven days after an initial act as an athlete
11 agent, the individual submits an application for registration
12 as an athlete agent in this Commonwealth.
13 (c) Contracts void.--An agency contract resulting from
14 conduct in violation of this section is void, and the athlete
15 agent shall return any consideration received under the
16 contract.
17 Section 5. Registration as athlete agent, form and
18 requirements.
19 (a) Applications.--An applicant for registration shall
20 submit an application for registration to the secretary in a
21 form prescribed by the secretary. An application filed under
22 this section is a public record. The application must be in the
23 name of an individual and, except as otherwise provided in
24 subsection (b), signed or otherwise authenticated by the
25 applicant under penalty of perjury and state or contain:
26 (1) The name of the applicant and the address of the
27 applicant's principal place of business.
28 (2) The name of the applicant's business or employer, if
29 applicable.
30 (3) Any business or occupation engaged in by the
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1 applicant for the five years next preceding the date of
2 submission of the application.
3 (4) A description of the applicant's formal training as
4 an athlete agent, practical experience as an athlete agent
5 and educational background relating to the applicant's
6 activities as an athlete agent.
7 (5) The names and addresses of three individuals not
8 related to the applicant who are willing to serve as
9 references.
10 (6) The name, sport and last known team for each
11 individual for whom the applicant acted as an athlete agent
12 during the five years next preceding the date of submission
13 of the application.
14 (7) The names and addresses of all persons who are:
15 (i) with respect to the athlete agent's business if
16 it is not a corporation, the partners, members, officers,
17 managers, associates or profit-sharers of the business;
18 and
19 (ii) with respect to a corporation employing the
20 athlete agent, the officers, directors and any
21 shareholder of the corporation having an interest of 5%
22 or greater.
23 (8) Whether the applicant or any person named pursuant
24 to paragraph (7) has been convicted of a crime that, if
25 committed in this Commonwealth, would be a crime involving
26 moral turpitude or a felony, and identify the crime.
27 (9) Whether there has been any administrative or
28 judicial determination that the applicant or any person named
29 pursuant to paragraph (7) has made a false, misleading,
30 deceptive or fraudulent representation.
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1 (10) Any instance in which the conduct of the applicant
2 or any person named pursuant to paragraph (7) resulted in the
3 imposition of a sanction, suspension or declaration of
4 ineligibility to participate in an interscholastic or
5 intercollegiate athletic event on a student athlete or
6 educational institution.
7 (11) Any sanction, suspension or disciplinary action
8 taken against the applicant or any person named pursuant to
9 paragraph (7) arising out of occupational or professional
10 conduct.
11 (12) Whether there has been any denial of an application
12 for, suspension or revocation of or refusal to renew the
13 registration or licensure of the applicant or any person
14 named pursuant to paragraph (7) as an athlete agent in any
15 state.
16 (b) Applications and certificates from other states.--An
17 individual who has submitted an application for and holds a
18 certificate of registration or licensure as an athlete agent in
19 another state may submit a copy of the application and
20 certificate in lieu of submitting an application in the form
21 prescribed pursuant to subsection (a). The secretary shall
22 accept the application and the certificate from the other state
23 as an application for registration in this Commonwealth if the
24 application to the other state:
25 (1) Was submitted in the other state within six months
26 next preceding the submission of the application in this
27 Commonwealth and the applicant certifies that the information
28 contained in the application is current.
29 (2) Contains information substantially similar to or
30 more comprehensive than that required in an application
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1 submitted this Commonwealth.
2 (3) Was signed by the applicant under penalty of
3 perjury.
4 Section 6. Certificate of registration, issuance or denial and
5 renewal.
6 (a) Issuance of certificate.--Except as otherwise provided
7 in subsection (b), the secretary shall issue a certificate of
8 registration to an individual who complies with section 5(a) or
9 whose application has been accepted under section 5(b).
10 (b) Denial of registration.--The secretary may refuse to
11 issue a certificate of registration if the secretary determines
12 that the applicant has engaged in conduct that has a significant
13 adverse effect on the applicant's fitness to act as an athlete
14 agent. In making the determination, the secretary may consider
15 whether the applicant has:
16 (1) been convicted of a crime that, if committed in this
17 Commonwealth, would be a crime involving moral turpitude or a
18 felony;
19 (2) made a materially false, misleading, deceptive or
20 fraudulent representation in the application or as an athlete
21 agent;
22 (3) engaged in conduct that would disqualify the
23 applicant from serving in a fiduciary capacity;
24 (4) engaged in conduct prohibited by section 14;
25 (5) had a registration or licensure as an athlete agent
26 suspended, revoked or denied or been refused renewal of
27 registration or licensure as an athlete agent in any state;
28 (6) engaged in conduct the consequence of which was that
29 a sanction, suspension or declaration of ineligibility to
30 participate in an interscholastic or intercollegiate athletic
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1 event was imposed on a student athlete or educational
2 institution; or
3 (7) engaged in conduct that significantly adversely
4 reflects on the applicant's credibility, honesty or
5 integrity.
6 (c) Standards.--In making a determination under subsection
7 (b), the secretary shall consider:
8 (1) How recently the conduct occurred.
9 (2) The nature of the conduct and the context in which
10 it occurred.
11 (3) Any other relevant conduct of the applicant.
12 (d) Renewal of registration.--An athlete agent may apply to
13 renew a registration by submitting an application for renewal in
14 a form prescribed by the secretary. An application filed under
15 this section is a public record. The application for renewal
16 must be signed by the applicant under penalty of perjury and
17 must contain current information on all matters required in an
18 original registration.
19 (e) Application and registration from other states.--An
20 individual who has submitted an application for renewal of
21 registration or licensure in another state, in lieu of
22 submitting an application for renewal in the form prescribed
23 pursuant to subsection (d), may file a copy of the application
24 for renewal and a valid certificate of registration or licensure
25 from the other state. The secretary shall accept the application
26 for renewal from the other state as an application for renewal
27 in this Commonwealth if the application to the other state:
28 (1) Was submitted in the other state within six months
29 next preceding the filing in this state and the applicant
30 certifies the information contained in the application for
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1 renewal is current.
2 (2) Contains information substantially similar to or
3 more comprehensive than that required in an application for
4 renewal submitted in this Commonwealth.
5 (3) Was signed by the applicant under penalty of
6 perjury.
7 (f) Terms of registration.--A certificate of registration or
8 a renewal of a registration is valid for two years.
9 Section 7. Suspension, revocation or refusal to renew
10 registration.
11 (a) Suspension, revocation or refusal to renew.--The
12 secretary may suspend, revoke or refuse to renew a registration
13 for conduct that would have justified denial of registration
14 under section 6(b).
15 (b) Notice and hearing.--The secretary may deny, suspend,
16 revoke or refuse to renew a certificate of registration or
17 licensure only after proper notice and an opportunity for a
18 hearing.
19 Section 8. Temporary registration.
20 The secretary may issue a temporary certificate of
21 registration while an application for registration or renewal of
22 registration is pending.
23 Section 9. Registration and renewal fees.
24 An application for registration or renewal of registration
25 must be accompanied by a fee in the amount of $100.
26 Section 10. Required form of contract.
27 (a) Record.--An agency contract must be in a record, signed
28 or otherwise authenticated by the parties.
29 (b) Contents of contract.--An agency contract must state or
30 contain:
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1 (1) The amount and method of calculating the
2 consideration to be paid by the student athlete for services
3 to be provided by the athlete agent under the contract and
4 any other consideration the athlete agent has received or
5 will receive from any other source for entering into the
6 contract or for providing the services.
7 (2) The name of any person not listed in the application
8 for registration or renewal of registration who will be
9 compensated because the student athlete signed the agency
10 contract.
11 (3) A description of any expenses that the student
12 athlete agrees to reimburse.
13 (4) A description of the services to be provided to the
14 student athlete.
15 (5) The duration of the contract.
16 (6) The date of execution.
17 (c) Notice.--An agency contract must contain, in close
18 proximity to the signature of the student athlete, a conspicuous
19 notice in boldface type in capital letters stating:
20 WARNING TO STUDENT ATHLETE
21 IF YOU SIGN THIS CONTRACT:
22 (1) YOU MAY LOSE YOUR ELIGIBILITY TO COMPETE AS A
23 STUDENT ATHLETE IN YOUR SPORT;
24 (2) IF YOU HAVE AN ATHLETIC DIRECTOR, WITHIN 72 HOURS
25 AFTER ENTERING INTO THIS CONTRACT, BOTH YOU AND YOUR ATHLETE
26 AGENT MUST NOTIFY YOUR ATHLETIC DIRECTOR; AND
27 (3) YOU MAY CANCEL THIS CONTRACT WITHIN 14 DAYS AFTER
28 SIGNING IT. CANCELLATION OF THIS CONTRACT MAY NOT REINSTATE
29 YOUR ELIGIBILITY.
30 (d) Voidable contracts.--An agency contract that does not
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1 conform to this section is voidable by the student athlete. If a
2 student athlete voids an agency contract, the student athlete is
3 not required to pay any consideration under the contract or to
4 return any consideration received from the athlete agent to
5 induce the student athlete to enter into the contract.
6 (e) Copy of record.--The athlete agent shall give a record
7 of the signed or otherwise authenticated agency contract to the
8 student athlete at the time of execution.
9 Section 11. Notice to educational institution.
10 (a) Notice of existence of contract.--Within 72 hours after
11 entering into an agency contract or before the next scheduled
12 athletic event in which the student athlete may participate,
13 whichever occurs first, the athlete agent shall give notice in a
14 record of the existence of the contract to the athletic director
15 of the educational institution at which the student athlete is
16 enrolled or the athlete agent has reasonable grounds to believe
17 the student athlete intends to enroll.
18 (b) Other notification.--Within 72 hours after entering into
19 an agency contract or before the next athletic event in which
20 the student athlete may participate, whichever occurs first, the
21 student athlete shall inform the athletic director of the
22 educational institution at which the student athlete is enrolled
23 that he or she has entered into an agency contract.
24 Section 12. Student athlete's right to cancel.
25 A student athlete may cancel an agency contract by giving
26 notice of the cancellation to the athlete agent in a record
27 within 14 days after the contract is signed. A student athlete
28 may not waive the right to cancel an agency contract. If a
29 student athlete cancels an agency contract, the student athlete
30 is not required to pay any consideration under the contract or
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1 to return any consideration received from the athlete agent to
2 induce the student athlete to enter into the contract.
3 Section 13. Required records.
4 (a) Retention of records.--An athlete agent shall retain the
5 following records for a period of five years.
6 (1) The name and address of each individual represented
7 by the athlete agent.
8 (2) Any agency contract entered into by the athlete
9 agent.
10 (3) 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 (b) Inspection of records.--Records required by subsection
14 (a) to be retained are open to inspection by the secretary
15 during normal business hours.
16 Section 14. Prohibited conduct.
17 (a) Conduct by agent.--An athlete agent, with the intent to
18 induce a student athlete to enter into an agency contract, may
19 not:
20 (1) give any materially false or misleading information
21 or make a materially false promise or representation;
22 (2) furnish anything of value to a student athlete
23 before the student athlete enters into the agency contract;
24 or
25 (3) furnish anything of value to any individual other
26 than the student athlete or another registered athlete agent.
27 (b) Conduct by athlete.--An athlete agent may not
28 intentionally:
29 (1) initiate contact with a student athlete unless
30 registered under this act.
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1 (2) refuse or fail to retain or permit inspection of the
2 records required to be retained by section 13;
3 (3) fail to register when required by section 4;
4 (4) provide materially false or misleading information
5 in an application for registration or renewal of
6 registration;
7 (5) predate or postdate an agency contract; or
8 (6) fail to notify a student athlete before the student
9 athlete signs or otherwise authenticates an agency contract
10 for a particular sport that the signing or authentication may
11 make the student athlete ineligible to participate as a
12 student athlete in that sport.
13 Section 15. Criminal penalties.
14 An athlete agent who violates section 14 commits a second
15 degree misdemeanor.
16 Section 16. Civil remedies.
17 (a) Education institutions.--An educational institution has
18 a right of action against an athlete agent or a former student
19 athlete for damages caused by a violation of this act. In an
20 action under this section, the court may award to the prevailing
21 party costs and reasonable attorney fees.
22 (b) Damages.--Damages of an educational institution under
23 subsection (a) include losses and expenses incurred because, as
24 a result of the conduct of an athlete agent or former student
25 athlete, the educational institution was injured by a violation
26 of this act or was penalized, disqualified or suspended from
27 participation in athletics by a national association for the
28 promotion and regulation of athletics, by an athletic conference
29 or by reasonable self-imposed disciplinary action taken to
30 mitigate sanctions likely to be imposed by such an organization.
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1 (c) Accrual of action.--A right of action under this section
2 does not accrue until the educational institution discovers or
3 by the exercise of reasonable diligence would have discovered
4 the violation by the athlete agent or former student athlete.
5 (d) Liability.--Any liability of the athlete agent or the
6 former student athlete under this section is several and not
7 joint.
8 (e) Applicability.--This act does not restrict rights,
9 remedies or defenses of any person under law or equity.
10 Section 17. Administrative penalty.
11 The secretary may assess a civil penalty against an athlete
12 agent not to exceed $2,500 for a violation of this act.
13 Section 18. Uniformity of application and construction.
14 In applying and construing this act, consideration must be
15 given to the need to promote uniformity of the law with respect
16 to its subject matter among states that enact it.
17 Section 19. Electronic Signatures in Global and National
18 Commerce Act.
19 The provisions of this act governing the legal effect,
20 validity or enforceability of electronic records or signatures
21 and of contracts formed or performed with the use of such
22 records or signatures must conform to the requirements of
23 section 102 of the Electronic Signatures in Global and National
24 Commerce Act (Public Law 106-229, 15 U.S.C. § 7002 et seq.) and
25 supersede, modify and limit the Electronic Signatures in Global
26 and National Commerce Act.
27 Section 20. Severability.
28 If any provision of this act or its application to any person
29 or circumstance is held invalid, the invalidity shall not affect
30 other provisions or applications of this act which can be given
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1 effect without the invalid provision or application, and to this
2 end the provisions of this act are severable.
3 Section 21. Effective date.
4 This act shall take effect in 60 days.
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