Senate Bill sb2066
CODING: Words stricken are deletions; words underlined are additions.
    Florida Senate - 2001                                  SB 2066
    By Senator King
    8-847-01                                           See HB 1477
  1                      A bill to be entitled
  2         An act relating to athlete agents; revising pt.
  3         IX, ch. 468, F.S., to adopt a uniform law for
  4         regulating athlete agents in place of current
  5         law regulating athlete agents; creating ss.
  6         468.4611-468.4631, F.S.; providing a short
  7         title; providing definitions; providing for
  8         service of process and issuance of subpoenas;
  9         requiring registration of athlete agents and
10         providing requirements therefor; providing for
11         issuance and renewal of certificates of
12         registration; providing for suspension,
13         revocation, or refusal to renew registration;
14         providing for temporary registration; providing
15         fees; providing contract requirements;
16         requiring certain notice to educational
17         institution; providing student-athlete's right
18         to cancel a contract; providing recordkeeping
19         requirements; prohibiting certain conduct;
20         providing criminal penalties, civil remedies,
21         and administrative penalties; providing
22         liability; providing for uniformity of
23         application and construction; providing
24         requirements with respect to electronic
25         records, signatures, and contracts; repealing
26         ss. 468.451-468.457, F.S., relating to
27         regulation of athlete agents, to conform;
28         providing applicability to current licensees;
29         providing severability; providing an effective
30         date.
31
                                  1
CODING: Words stricken are deletions; words underlined are additions.
    Florida Senate - 2001                                  SB 2066
    8-847-01                                           See HB 1477
  1  Be It Enacted by the Legislature of the State of Florida:
  2
  3         Section 1.  Sections 468.4611, 468.4612, 468.4613,
  4  468.4614, 468.4615, 468.4616, 468.4617, 468.4618, 468.4619,
  5  468.4621, 468.4622, 468.4623, 468.4624, 468.4625, 468.4626,
  6  468.4627, 468.4628, 468.4629, and 468.4631, Florida Statutes,
  7  are created to read:
  8         468.4611  Short title.--This part may be cited as the
  9  "Uniform Athlete Agents Act."
10         468.4612  Definitions.--In this part:
11         (1)  "Agency contract" means an agreement in which a
12  student-athlete authorizes a person to negotiate or solicit on
13  behalf of the student-athlete a professional-sports-services
14  contract or an endorsement contract.
15         (2)  "Athlete agent" means an individual who enters
16  into an agency contract with a student-athlete or, directly or
17  indirectly, recruits or solicits a student-athlete to enter
18  into an agency contract. The term includes an individual who
19  represents to the public that the individual is an athlete
20  agent. The term does not include a spouse, parent, sibling,
21  grandparent, or guardian of the student-athlete or an
22  individual acting solely on behalf of a professional sports
23  team or professional sports organization.
24         (3)  "Athletic director" means an individual
25  responsible for administering the overall athletic program of
26  an educational institution or, if an educational institution
27  has separately administered athletic programs for male
28  students and female students, the athletic program for males
29  or the athletic program for females, as appropriate.
30         (4)  "Contact" means a communication, direct or
31  indirect, between an athlete agent and a student-athlete to
                                  2
CODING: Words stricken are deletions; words underlined are additions.
    Florida Senate - 2001                                  SB 2066
    8-847-01                                           See HB 1477
  1  recruit or solicit the student-athlete to enter into an agency
  2  contract.
  3         (5)  "Department" means the Department of Business and
  4  Professional Regulation.
  5         (6)  "Endorsement contract" means an agreement under
  6  which a student-athlete is employed or receives consideration
  7  to use on behalf of the other party any value that the
  8  student-athlete may have because of publicity, reputation,
  9  following, or fame obtained because of athletic ability or
10  performance.
11         (7)  "Intercollegiate sport" means a sport played at
12  the collegiate level for which eligibility requirements for
13  participation by a student-athlete are established by a
14  national association for the promotion or regulation of
15  collegiate athletics.
16         (8)  "Person" means an individual, corporation,
17  business trust, estate, trust, partnership, limited liability
18  company, association, joint venture, government or
19  governmental subdivision, agency, or instrumentality, public
20  corporation, or any other legal or commercial entity.
21         (9)  "Professional-sports-services contract" means an
22  agreement under which an individual is employed, or agrees to
23  render services, as a player on a professional sports team,
24  with a professional sports organization, or as a professional
25  athlete.
26         (10)  "Record" means information that is inscribed on a
27  tangible medium or that is stored in an electronic or other
28  medium and is retrievable in perceivable form.
29         (11)  "Registration" means registration as an athlete
30  agent pursuant to this part.
31
                                  3
CODING: Words stricken are deletions; words underlined are additions.
    Florida Senate - 2001                                  SB 2066
    8-847-01                                           See HB 1477
  1         (12)  "State" means a state of the United States, the
  2  District of Columbia, Puerto Rico, the United States Virgin
  3  Islands, or any territory or insular possession subject to the
  4  jurisdiction of the United States.
  5         (13)  "Student-athlete" means an individual who engages
  6  in, is eligible to engage in, or may be eligible in the future
  7  to engage in any intercollegiate sport. If an individual is
  8  permanently ineligible to participate in a particular
  9  intercollegiate sport, the individual is not a student-athlete
10  for purposes of that sport.
11         468.4613  Service of process; subpoenas.--
12         (1)  By acting as an athlete agent in this state, a
13  nonresident individual appoints the department as the
14  individual's agent for service of process in any civil action
15  in this state related to the individual's acting as an athlete
16  agent in this state.
17         (2)  The department may issue subpoenas for any
18  material that is relevant to the administration of this part.
19         468.4614  Athlete agents; registration required; void
20  contracts.--
21         (1)  Except as otherwise provided in subsection (2), an
22  individual may not act as an athlete agent in this state
23  without holding a certificate of registration under s.
24  468.4616 or s. 468.4618.
25         (2)  Before being issued a certificate of registration,
26  an individual may act as an athlete agent in this state for
27  all purposes except signing an agency contract if:
28         (a)  A student-athlete or another person acting on
29  behalf of the student-athlete initiates communication with the
30  individual; and
31
                                  4
CODING: Words stricken are deletions; words underlined are additions.
    Florida Senate - 2001                                  SB 2066
    8-847-01                                           See HB 1477
  1         (b)  Within 7 days after an initial act as an athlete
  2  agent, the individual submits an application for registration
  3  as an athlete agent in this state.
  4         (3)  An agency contract resulting from conduct in
  5  violation of this section is void, and the athlete agent shall
  6  return any consideration received under the contract.
  7         468.4615  Registration as athlete agent; form;
  8  requirements.--
  9         (1)  An applicant for registration shall submit an
10  application for registration to the department in a form
11  prescribed by the department. An application filed under this
12  section is a public record. The application must be in the
13  name of an individual and, except as otherwise provided in
14  subsection (2), signed or otherwise authenticated by the
15  applicant under penalty of perjury and must state or contain:
16         (a)  The name of the applicant and the address of the
17  applicant's principal place of business;
18         (b)  The name of the applicant's business or employer,
19  if applicable;
20         (c)  Any business or occupation engaged in by the
21  applicant for the 5 years next preceding the date of
22  submission of the application;
23         (d)  A description of the applicant's:
24         1.  Formal training as an athlete agent;
25         2.  Practical experience as an athlete agent; and
26         3.  Educational background relating to the applicant's
27  activities as an athlete agent;
28         (e)  The names and addresses of three individuals not
29  related to the applicant who are willing to serve as
30  references;
31
                                  5
CODING: Words stricken are deletions; words underlined are additions.
    Florida Senate - 2001                                  SB 2066
    8-847-01                                           See HB 1477
  1         (f)  The name, sport, and last known team for each
  2  individual for whom the applicant acted as an athlete agent
  3  during the 5 years next preceding the date of submission of
  4  the application;
  5         (g)  The names and addresses of all persons who are:
  6         1.  With respect to the athlete agent's business if it
  7  is not a corporation, the partners, members, officers,
  8  managers, associates, or profit sharers of the business; and
  9         2.  With respect to a corporation employing the athlete
10  agent, the officers, directors, and any shareholder of the
11  corporation having an interest of 5 percent or greater;
12         (h)  Whether the applicant or any person named pursuant
13  to paragraph (g) has been convicted of a crime that, if
14  committed in this state, would be a crime involving moral
15  turpitude or a felony, and identify the crime;
16         (i)  Whether there has been any administrative or
17  judicial determination that the applicant or any person named
18  pursuant to paragraph (g) has made a false, misleading,
19  deceptive, or fraudulent representation;
20         (j)  Any instance in which the conduct of the applicant
21  or any person named pursuant to paragraph (g) resulted in the
22  imposition of a sanction, suspension, or declaration of
23  ineligibility to participate in an interscholastic or
24  intercollegiate athletic event on a student-athlete or
25  educational institution;
26         (k)  Any sanction, suspension, or disciplinary action
27  taken against the applicant or any person named pursuant to
28  paragraph (g) arising out of occupational or professional
29  conduct; and
30         (l)  Whether there has been any denial of an
31  application for, suspension or revocation of, or refusal to
                                  6
CODING: Words stricken are deletions; words underlined are additions.
    Florida Senate - 2001                                  SB 2066
    8-847-01                                           See HB 1477
  1  renew the registration or licensure of the applicant or any
  2  person named pursuant to paragraph (g) as an athlete agent in
  3  any state.
  4         (2)  An individual who has submitted an application
  5  for, and holds a certificate of, registration or licensure as
  6  an athlete agent in another state may submit a copy of the
  7  application and certificate in lieu of submitting an
  8  application in the form prescribed pursuant to subsection (1).
  9  The department shall accept the application and the
10  certificate from the other state as an application for
11  registration in this state if the application to the other
12  state:
13         (a)  Was submitted in the other state within 6 months
14  next preceding the submission of the application in this state
15  and the applicant certifies that the information contained in
16  the application is current;
17         (b)  Contains information substantially similar to or
18  more comprehensive than that required in an application
19  submitted in this state; and
20         (c)  Was signed by the applicant under penalty of
21  perjury.
22         468.4616  Certificate of registration; issuance or
23  denial; renewal.--
24         (1)  Except as otherwise provided in subsection (2),
25  the department shall issue a certificate of registration to an
26  individual who complies with s. 468.4615(1) or whose
27  application has been accepted under s. 468.4615(2).
28         (2)  The department may refuse to issue a certificate
29  of registration if the department determines that the
30  applicant has engaged in conduct that has a significant
31  adverse effect on the applicant's fitness to act as an athlete
                                  7
CODING: Words stricken are deletions; words underlined are additions.
    Florida Senate - 2001                                  SB 2066
    8-847-01                                           See HB 1477
  1  agent. In making the determination, the department may
  2  consider whether the applicant has:
  3         (a)  Been convicted of a crime that, if committed in
  4  this state, would be a crime involving moral turpitude or a
  5  felony;
  6         (b)  Made a materially false, misleading, deceptive, or
  7  fraudulent representation in the application or as an athlete
  8  agent;
  9         (c)  Engaged in conduct that would disqualify the
10  applicant from serving in a fiduciary capacity;
11         (d)  Engaged in conduct prohibited by s. 468.4625;
12         (e)  Had a registration or licensure as an athlete
13  agent suspended, revoked, or denied or been refused renewal of
14  registration or licensure as an athlete agent in any state;
15         (f)  Engaged in conduct the consequence of which was
16  that a sanction, suspension, or declaration of ineligibility
17  to participate in an interscholastic or intercollegiate
18  athletic event was imposed on a student-athlete or educational
19  institution; or
20         (g)  Engaged in conduct that significantly adversely
21  reflects on the applicant's credibility, honesty, or
22  integrity.
23         (3)  In making a determination under subsection (2),
24  the department shall consider:
25         (a)  How recently the conduct occurred;
26         (b)  The nature of the conduct and the context in which
27  it occurred; and
28         (c)  Any other relevant conduct of the applicant.
29         (4)  An athlete agent may apply to renew a registration
30  by submitting an application for renewal in a form prescribed
31  by the department. An application filed under this section is
                                  8
CODING: Words stricken are deletions; words underlined are additions.
    Florida Senate - 2001                                  SB 2066
    8-847-01                                           See HB 1477
  1  a public record. The application for renewal must be signed by
  2  the applicant under penalty of perjury and must contain
  3  current information on all matters required in an original
  4  registration.
  5         (5)  An individual who has submitted an application for
  6  renewal of registration or licensure in another state, in lieu
  7  of submitting an application for renewal in the form
  8  prescribed pursuant to subsection (4), may file a copy of the
  9  application for renewal and a valid certificate of
10  registration or licensure from the other state. The department
11  shall accept the application for renewal from the other state
12  as an application for renewal in this state if the application
13  to the other state:
14         (a)  Was submitted in the other state within 6 months
15  next preceding the filing in this state and the applicant
16  certifies the information contained in the application for
17  renewal is current;
18         (b)  Contains information substantially similar to or
19  more comprehensive than that required in an application for
20  renewal submitted in this state; and
21         (c)  Was signed by the applicant under penalty of
22  perjury.
23         (6)  A certificate of registration or a renewal of a
24  registration is valid for 2 years.
25         468.4617  Suspension, revocation, or refusal to renew
26  registration.--
27         (1)  The department may suspend, revoke, or refuse to
28  renew a registration for conduct that would have justified
29  denial of registration under s. 468.4616(2).
30         (2)  The department may deny, suspend, revoke, or
31  refuse to renew a certificate of registration or licensure
                                  9
CODING: Words stricken are deletions; words underlined are additions.
    Florida Senate - 2001                                  SB 2066
    8-847-01                                           See HB 1477
  1  only after proper notice and an opportunity for a hearing.
  2  Chapter 120, the Administrative Procedure Act, applies to this
  3  part.
  4         468.4618  Temporary registration.--The department may
  5  issue a temporary certificate of registration while an
  6  application for registration or renewal of registration is
  7  pending.
  8         468.4619  Registration and renewal fees.--An
  9  application for registration or renewal of registration must
10  be accompanied by a fee in the following amount:
11         (1)  For an initial application for
12  registration.............................................$500.
13         (2)  For an application for registration based upon a
14  certificate of registration or licensure issued by another
15  state....................................................$500.
16         (3)  For an application for renewal of
17  registration.............................................$500.
18         (4)  For an application for renewal of registration
19  based upon an application for renewal of registration or
20  licensure submitted in another state.....................$500.
21         468.4621  Required form of contract.--
22         (1)  An agency contract must be in a record, signed, or
23  otherwise authenticated by the parties.
24         (2)  An agency contract must state or contain:
25         (a)  The amount and method of calculating the
26  consideration to be paid by the student-athlete for services
27  to be provided by the athlete agent under the contract and any
28  other consideration the athlete agent has received or will
29  receive from any other source for entering into the contract
30  or for providing the services;
31
                                  10
CODING: Words stricken are deletions; words underlined are additions.
    Florida Senate - 2001                                  SB 2066
    8-847-01                                           See HB 1477
  1         (b)  The name of any person not listed in the
  2  application for registration or renewal of registration who
  3  will be compensated because the student-athlete signed the
  4  agency contract;
  5         (c)  A description of any expenses that the
  6  student-athlete agrees to reimburse;
  7         (d)  A description of the services to be provided to
  8  the student-athlete;
  9         (e)  The duration of the contract; and
10         (f)  The date of execution.
11         (3)  An agency contract must contain, in close
12  proximity to the signature of the student-athlete, a
13  conspicuous notice in boldface type in capital letters
14  stating:
15
16                    WARNING TO STUDENT-ATHLETE
17
18         IF YOU SIGN THE CONTRACT:
19              1.  YOU MAY LOSE YOUR ELIGIBILITY TO
20         COMPETE AS A STUDENT-ATHLETE IN YOUR SPORT;
21              2.  IF YOU HAVE AN ATHLETIC DIRECTOR,
22         WITHIN 72 HOURS AFTER ENTERING INTO THE
23         CONTRACT, BOTH YOU AND YOUR ATHLETE AGENT MUST
24         NOTIFY YOUR ATHLETIC DIRECTOR; AND
25              3.  YOU MAY CANCEL THIS CONTRACT WITHIN 14
26         DAYS AFTER SIGNING IT. CANCELLATION OF THIS
27         CONTRACT MAY NOT REINSTATE YOUR ELIGIBILITY.
28
29         (4)  An agency contract that does not conform to this
30  section is voidable by the student-athlete. If a
31  student-athlete voids an agency contract, the student-athlete
                                  11
CODING: Words stricken are deletions; words underlined are additions.
    Florida Senate - 2001                                  SB 2066
    8-847-01                                           See HB 1477
  1  is not required to pay any consideration under the contract or
  2  to return any consideration received from the athlete agent to
  3  induce the student-athlete to enter into the contract.
  4         (5)  The athlete agent shall give a record of the
  5  signed or otherwise authenticated agency contract to the
  6  student-athlete at the time of execution.
  7         468.4622  Notice to educational institution.--
  8         (1)  Within 72 hours after entering into an agency
  9  contract or before the next scheduled athletic event in which
10  the student-athlete may participate, whichever occurs first,
11  the athlete agent shall give notice in a record of the
12  existence of the contract to the athletic director of the
13  educational institution at which the student-athlete is
14  enrolled or the athlete agent has reasonable grounds to
15  believe the student-athlete intends to enroll.
16         (2)  Within 72 hours after entering into an agency
17  contract or before the next athletic event in which the
18  student-athlete may participate, whichever occurs first, the
19  student-athlete shall inform the athletic director of the
20  educational institution at which the student-athlete is
21  enrolled that he or she has entered into an agency contract.
22         468.4623  Student-athlete's right to cancel.--
23         (1)  A student-athlete may cancel an agency contract by
24  giving notice of the cancellation to the athlete agent in a
25  record within 14 days after the contract is signed.
26         (2)  A student-athlete may not waive the right to
27  cancel an agency contract.
28         (3)  If a student-athlete cancels an agency contract,
29  the student-athlete is not required to pay any consideration
30  under the contract or to return any consideration received
31
                                  12
CODING: Words stricken are deletions; words underlined are additions.
    Florida Senate - 2001                                  SB 2066
    8-847-01                                           See HB 1477
  1  from the athlete agent to induce the student-athlete to enter
  2  into the contract.
  3         468.4624  Required records.--
  4         (1)  An athlete agent shall retain the following
  5  records for a period of 5 years:
  6         (a)  The name and address of each individual
  7  represented by the athlete agent;
  8         (b)  Any agency contract entered into by the athlete
  9  agent; and
10         (c)  Any direct costs incurred by the athlete agent in
11  the recruitment or solicitation of a student-athlete to enter
12  into an agency contract.
13         (2)  Records required by subsection (1) to be retained
14  are open to inspection by the department during normal
15  business hours.
16         468.4625  Prohibited conduct.--
17         (1)  An athlete agent, with the intent to induce a
18  student-athlete to enter into an agency contract, may not:
19         (a)  Give any materially false or misleading
20  information or make a materially false promise or
21  representation;
22         (b)  Furnish anything of value to a student-athlete
23  before the student-athlete enters into the agency contract; or
24         (c)  Furnish anything of value to any individual other
25  than the student-athlete or another registered athlete agent.
26         (2)  An athlete agent may not intentionally:
27         (a)  Initiate contact with a student-athlete unless
28  registered under this part;
29         (b)  Refuse or fail to retain or permit inspection of
30  the records required to be retained by s. 468.4624;
31         (c)  Fail to register when required by s. 468.4614;
                                  13
CODING: Words stricken are deletions; words underlined are additions.
    Florida Senate - 2001                                  SB 2066
    8-847-01                                           See HB 1477
  1         (d)  Provide materially false or misleading information
  2  in an application for registration or renewal of registration;
  3         (e)  Predate or postdate an agency contract; or
  4         (f)  Fail to notify a student-athlete before the
  5  student-athlete signs or otherwise authenticates an agency
  6  contract for a particular sport that the signing or
  7  authentication may make the student-athlete ineligible to
  8  participate as a student-athlete in that sport.
  9         468.4626  Criminal penalties.--An athlete agent who
10  violates s. 468.4625 commits a felony of the second degree,
11  punishable as provided in s. 775.082, s. 775.083, or s.
12  775.084.
13         468.4627  Civil remedies.--
14         (1)  An educational institution has a right of action
15  against an athlete agent or a former student-athlete for
16  damages caused by a violation of this part. In an action under
17  this section, the court may award to the prevailing party
18  costs and reasonable attorney's fees.
19         (2)  Damages of an educational institution under
20  subsection (1) include losses and expenses incurred because,
21  as a result of the conduct of an athlete agent or former
22  student-athlete, the educational institution was injured by a
23  violation of this part or was penalized, disqualified, or
24  suspended from participation in athletics by a national
25  association for the promotion and regulation of athletics, by
26  an athletic conference, or by reasonable self-imposed
27  disciplinary action taken to mitigate sanctions likely to be
28  imposed by such an organization.
29         (3)  A right of action under this section does not
30  accrue until the educational institution discovers or by the
31
                                  14
CODING: Words stricken are deletions; words underlined are additions.
    Florida Senate - 2001                                  SB 2066
    8-847-01                                           See HB 1477
  1  exercise of reasonable diligence would have discovered the
  2  violation by the athlete agent or former student-athlete.
  3         (4)  Any liability of the athlete agent or the former
  4  student-athlete under this section is several and not joint.
  5         (5)  This part does not restrict rights, remedies, or
  6  defenses of any person under law or equity.
  7         468.4628  Administrative penalty.--The department may
  8  assess a civil penalty against an athlete agent not to exceed
  9  $25,000 for a violation of this part.
10         468.4629  Uniformity of application and
11  construction.--In applying and construing this uniform act,
12  consideration must be given to the need to promote uniformity
13  of the law with respect to its subject matter among states
14  that enact it.
15         468.4631  Electronic records, signatures, and
16  contracts.--The provisions of this part governing the legal
17  effect, validity, or enforceability of electronic records or
18  signatures, and of contracts formed or performed with the use
19  of such records or signatures, conform to the requirements of
20  Section 102 of the Electronic Signatures in Global and
21  National Commerce Act, Pub. L. No. 106-229, 114 Stat. 464
22  (2000), and supersede, modify, and limit the Electronic
23  Signatures in Global and National Commerce Act.
24         Section 2.  Sections 468.451, 468.452, 468.453,
25  468.4535, 468.4536, 468.454, 468.456, 468.4561, 468.45615,
26  468.4562, 468.4563, 468.4564, 468.4565, and 468.457, Florida
27  Statutes, are repealed.
28         Section 3.  Any person who, on the effective date of
29  this act, has a valid license as an athlete agent issued under
30  the provisions of part IX of chapter 468, Florida Statutes,
31  repealed by this act shall be considered registered under the
                                  15
CODING: Words stricken are deletions; words underlined are additions.
    Florida Senate - 2001                                  SB 2066
    8-847-01                                           See HB 1477
  1  provisions of part IX of chapter 468, Florida Statutes,
  2  created by this act until the beginning of the immediately
  3  ensuing renewal period. At the time of renewal of such
  4  license, such person must register as required under the
  5  provisions of part IX of chapter 468, Florida Statutes,
  6  created by this act.
  7         Section 4.  If any provision of this act or its
  8  application to any person or circumstance is held invalid, the
  9  invalidity does not affect other provisions or applications of
10  this act which can be given effect without the invalid
11  provision or application, and to this end the provisions of
12  this act are severable.
13         Section 5.  This act shall take effect July 1, 2001.
14
15            *****************************************
16                          HOUSE SUMMARY
17
      Adopts a uniform law for regulating athlete agents.
18    Eliminates current law regulating athlete agents, to
      conform.  See bill for details.
19
20
21
22
23
24
25
26
27
28
29
30
31
                                  16
CODING: Words stricken are deletions; words underlined are additions.