Bill Text: CA SB1098 | 2009-2010 | Regular Session | Enrolled
Bill Title: Athlete agents.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Vetoed) 2010-09-30 - In Senate. To unfinished business. (Veto) [SB1098 Detail]
Download: California-2009-SB1098-Enrolled.html
BILL NUMBER: SB 1098 ENROLLED
BILL TEXT
PASSED THE SENATE AUGUST 25, 2010
PASSED THE ASSEMBLY AUGUST 23, 2010
AMENDED IN ASSEMBLY JUNE 22, 2010
AMENDED IN SENATE MAY 24, 2010
AMENDED IN SENATE APRIL 20, 2010
AMENDED IN SENATE APRIL 5, 2010
INTRODUCED BY Senator Corbett
FEBRUARY 17, 2010
An act to amend, repeal, and add Section 6106.7 of, to add Section
18897.98 to, to add Chapter 2.8 (commencing with Section 18900) to,
and to repeal Chapter 2.5 (commencing with Section 18895) of,
Division 8 of, the Business and Professions Code, relating to athlete
agents.
LEGISLATIVE COUNSEL'S DIGEST
SB 1098, Corbett. Athlete agents.
Existing law, the Miller-Ayala Athlete Agents Act, regulates
specified activities of an athlete agent in representing or seeking
to represent student athletes and professional athletes. Under this
act, an agent is required to file with the Secretary of State
specified information about his or her background, training, and
experience and to advise an athlete of the availability of this
information. The act also requires the athlete agent to establish a
trust fund and deposit into it all funds received on behalf of the
athlete. The act includes specified conflict-of-interest provisions
pertaining to the activities of an athlete agent. The act imposes
additional requirements pertaining to an athlete agent's transactions
with a student athlete, specifying the circumstances under which an
athlete agent may contact a student athlete or his or her family, and
requiring the athlete agent to include a disclosure in a contract
with a student athlete, warning the student that he or she may lose
eligibility to compete in interscholastic or intercollegiate sports
upon entering into the contract and allowing the student athlete to
rescind the contract within 15 days. The act allows for a civil
action to recover damages resulting from its violation and makes void
any contract that fails to comply with its requirements. The act
also makes a violation of its provisions a misdemeanor offense.
This bill would make the provisions of the Miller-Ayala Athlete
Agents Act inoperative on July 1, 2011, and would repeal those
provisions as of January 1, 2012. The bill would enact the Uniform
Athlete Agents Act, which would, commencing July 1, 2011, regulate
the activities of an athlete agent in soliciting or contracting to
represent a student or professional athlete. The bill would prohibit,
subject to specified exceptions, a person from acting as an athlete
agent without a certificate of registration issued by the Department
of Industrial Relations. The bill would make void a contract to
represent a student or professional athlete obtained in violation of
these registration requirements, and would make voidable, at the
athlete's election, an agency contract that does not conform to other
provisions of the act. The bill would allow the acceptance of
registration as an athlete agent from another state.
This bill would additionally require that a contract between an
athlete agent and athlete contain specified provisions. A contract
with a student athlete would be required to contain additional
provisions, including the right of a student athlete to cancel the
contract within 14 days of its execution and a warning that the
student may lose his or her eligibility to compete as a student
athlete. The bill would require both the agent and student to notify
the educational institution in which the student is enrolled within
72 hours of entering into the contract or before the student's next
athletic event, whichever occurs first.
This bill would provide for a civil action by a professional
athlete, student athlete, or educational institution against an
athlete agent for damages resulting from a violation of the
requirements of the act. The bill would require an athlete agent to
establish a trust fund and deposit into it any payment he or she
receives on behalf of a professional athlete. The bill would modify
conflict-of-interest provisions with respect to agents representing
professional athletes and would incorporate other
conflict-of-interest provisions that pertain to the activities of an
athlete agent under existing law.
This bill would also prohibit other types of specified conduct by
an athlete agent and would make their commission a misdemeanor
offense. Because the bill would create new crimes, it would impose a
state-mandated local program. The bill in addition would make the
violation of its provisions grounds for the department to revoke or
suspend the athlete agent's registration and to excuse payment of the
athlete agent under specified contracts.
This bill would, commencing January 1, 2012, authorize the
department to assess a civil penalty not exceeding $25,000 against an
athlete agent. The bill would provide for the imposition of a fee
for registration and renewal. The bill would direct that the fees and
civil penalties be deposited into the Athlete Agent Registration
Fund, which would be created by the bill.
The bill would declare that its provisions are taken from the
Uniform Athlete Agents Act of 2000, drafted by the National
Conference of Commissioners on Uniform State Laws, and that
uniformity of the law shall be considered when construing the bill's
provisions.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 6106.7 of the Business and Professions Code is
amended to read:
6106.7. (a) It shall constitute cause for the imposition of
discipline of an attorney within the meaning of this chapter for an
attorney to violate any provision of the Miller-Ayala Athlete Agents
Act (Chapter 2.5 (commencing with Section 18895) of Division 8) or to
violate any provision of the law of any other state regulating
athlete agents.
(b) This section shall become inoperative on July 1, 2011, and, as
of January 1, 2012, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2012, deletes or
extends the dates on which it becomes inoperative and is repealed.
SEC. 2. Section 6106.7 is added to the Business and Professions
Code, to read:
6106.7. (a) It shall constitute cause for the imposition of
discipline of an attorney within the meaning of this chapter for an
attorney to violate any provision of the Uniform Athlete Agents Act
(Chapter 2.8 (commencing with Section 18900) of Division 8) or to
violate any provision of the law of any other state regulating
athlete agents.
(b) This section shall become operative on July 1, 2011.
SEC. 3. Section 18897.98 is added to the Business and Professions
Code, to read:
18897.98. This chapter shall become inoperative on July 1, 2011,
and, as of January 1, 2012, is repealed, unless a later enacted
statute, that becomes operative on or before January 1, 2012, deletes
or extends the dates on which it becomes inoperative and is
repealed.
SEC. 4. Chapter 2.8 (commencing with Section 18900) is added to
Division 8 of the Business and Professions Code, to read:
CHAPTER 2.8. UNIFORM ATHLETE AGENTS ACT
Article 1. General Provisions
18900. This chapter shall be known and may be cited as the
Uniform Athlete Agents Act.
18901. The following definitions apply for the purposes of this
chapter:
(a) "Agency contract" means an agreement in which a student or
professional athlete authorizes a person to negotiate or solicit on
behalf of the student or professional athlete a professional sports
services contract or an endorsement contract.
(b) "Athlete agent" means an individual who enters into an agency
contract with a student athlete or, directly or indirectly, recruits
or solicits a student athlete to enter into an agency contract. The
term includes an individual who represents to the public that the
individual is an athlete agent. The term does not include a spouse,
parent, foster parent, sibling, grandparent, or guardian of the
student athlete or an individual acting solely on behalf of a
professional sports team or professional sports organization.
"Athlete agent" also includes individuals who enter into an agency
contract with a professional athlete or directly recruit or solicit a
professional athlete to enter into an agency contract. "Athlete
agent" does not include a talent agency as defined in subdivision (a)
of Section 1700.4 of the Labor Code and licensed by the Labor
Commissioner pursuant to Chapter 4 (commencing with Section 1700) of
Part 6 of Division 2 of the Labor Code that does not directly or
indirectly recruit or solicit student athletes to enter into agency
contracts, endorsement contracts, or professional sports services
contracts, as defined in this chapter.
(c) "Athletic director" means an individual responsible for
administering the overall athletic program of an educational
institution or, if an educational institution has separately
administered athletic programs for male students and female students,
the athletic program for males or the athletic program for females,
as appropriate.
(d) "Contact" means a communication, direct or indirect, between
an athlete agent and a student or professional athlete, to recruit or
solicit the student or professional athlete to enter into an agency
contract.
(e) "Department" means the Department of Industrial Relations.
(f) "Endorsement contract" means an agreement under which a
student or professional athlete is employed or receives consideration
to use on behalf of the other party any value that the student or
professional athlete may have because of publicity, reputation,
following, or fame obtained because of athletic ability or
performance.
(g) "Intercollegiate sport" means a sport played at the collegiate
level for which eligibility requirements for participation by a
student athlete are established by a national association for the
promotion or regulation of collegiate athletics.
(h) "Negotiate" means any manner of communication, direct or
indirect, by an athlete agent with a professional sports team or
organization or other potential employer on behalf of a professional
athlete with whom the athlete agent has an agency contract.
"Negotiate" also includes an athlete agent being present on behalf of
a professional athlete with whom he or she has an agency contract
during any discussion of a professional endorsement contract or
professional sports service contract with a representative of the
professional sports team or organization or the potential or actual
employer of the professional athlete.
(i) "Person" means an individual, corporation, business trust,
estate, trust, partnership, limited liability company, association,
joint venture, government, governmental subdivision, agency, or
instrumentality, public corporation, or any other legal or commercial
entity.
(j) "Professional athlete" means an individual who has entered
into a valid professional sports service contract, an agency contract
for the provision of professional sports services, or an endorsement
contract based on athletic ability or performance, or an individual
who is otherwise permanently ineligible to participate in a
particular intercollegiate sport. "Professional athlete" does not
include a student athlete as defined in this chapter, but does
include a former student athlete who has previously signed a valid
professional sports services, agency, or endorsement contract.
(k) "Professional sports services contract" means an agreement
under which an individual is employed, or agrees to render services,
as a player on a professional sports team, with a professional sports
organization, or as a professional athlete.
(l) "Record" means information that is inscribed on a tangible
medium or that is stored in an electronic or other medium and is
retrievable in perceivable form.
(m) "Registration" means registration as an athlete agent pursuant
to this chapter.
(n) "State" means a state of the United States, the District of
Columbia, Puerto Rico, the United States Virgin Islands, or any
territory or insular possession subject to the jurisdiction of the
United States.
(o) "Student athlete" means an individual who engages in, is
eligible to engage in, or may be eligible in the future to engage in,
any intercollegiate sport. If an individual is permanently
ineligible to participate in a particular intercollegiate sport, the
individual is not a student athlete for purposes of that sport.
Article 2. Registration of Athlete Agents
18910. (a) Except as otherwise provided in subdivision (b), an
individual may not act as an athlete agent in this state without
holding a certificate of registration under Section 18912 or 18914.
(b) Before being issued a certificate of registration, an
individual may act as an athlete agent in this state for all purposes
except signing an agency contract, if a student or professional
athlete or another person acting on behalf of the student or
professional athlete initiates communication with the individual, and
within seven days after an initial act as an athlete agent, the
individual submits an application for registration as an athlete
agent in this state.
(c) An agency contract resulting from conduct in violation of this
section is void, and the athlete agent shall return any
consideration received under the contract.
18910.5. (a) Upon making first contact with a student or
professional athlete or with a relative, cohabitant, or a
representative of the student or professional athlete, an athlete
agent shall provide that person with a notification in a record
stating the following:
"This athlete agent has current public disclosure information on
file with the Department of Industrial Relations, as required under
California law, which also contains other protections of athletes.
Filing of required information does not constitute approval by the
Department of Industrial Relations of the competence of this athlete
agent."
(b) This notification shall also contain specific instructions on
the procedure to obtain disclosure information from the department.
18911. (a) An applicant for registration shall submit an
application for registration to the department in a form prescribed
by the department. The application shall be in the name of an
individual and, except as otherwise provided in subdivision (b),
state or contain the following information:
(1) The name of the applicant and the address of the applicant's
principal place of business.
(2) The name of the applicant's business or employer, if
applicable.
(3) Any business or occupation engaged in by the applicant for the
five years next preceding the date of submission of the application.
(4) A description of the applicant's formal training and practical
experience as an athlete agent and a description of the applicant's
educational background relating to his or her activities as an
athlete agent.
(5) The names and addresses of three individuals not related to
the applicant who are willing to serve as references.
(6) The name, sport, and last known team for each individual for
whom the applicant acted as an athlete agent during the five years
next preceding the date of submission of the application.
(7) If a corporation is employing the athlete agent, the names and
addresses of all persons who are officers or directors, and the name
and address of any shareholder of the corporation having an interest
of 5 percent or greater.
(8) If the athlete agent's business is other than a corporation,
the names and addresses of all persons who are the partners, members,
officers, managers, associates, or profit sharers of the business.
(9) Whether the applicant or any person named pursuant to
paragraph (7) or (8) has been convicted of a crime that, if committed
in this state, would be a crime involving moral turpitude or a
felony, and identify the crime.
(10) Whether there has been any administrative or judicial
determination that the applicant or any person named pursuant to
paragraph (7) or (8) has made a false, misleading, deceptive, or
fraudulent representation.
(11) Any instance in which the conduct of the applicant or any
person named pursuant to paragraph (7) or (8) resulted in the
imposition of a sanction, suspension, or declaration of ineligibility
to participate in an interscholastic or intercollegiate athletic
event on a student athlete or educational institution.
(12) Any sanction, suspension, or disciplinary action taken
against the applicant or any person named pursuant to paragraph (7)
or (8) arising out of occupational or professional conduct.
(13) Whether there has been any denial of an application for,
suspension or revocation of, or refusal to renew, the registration or
licensure of the applicant or any person named pursuant to paragraph
(7) or (8) as an athlete agent in any state.
(b) An individual who has submitted an application for, and holds
a certificate of, registration or licensure as an athlete agent in
another state may submit a copy of the application and certificate in
lieu of submitting an application in the form prescribed pursuant to
subdivision (a). The department shall accept the application and the
certificate from the other state as an application for registration
in this state if the application to the other state meets the
following criteria:
(1) It was submitted in the other state within six months next
preceding the submission of the application in this state, and the
applicant certifies that the information contained in the application
is current.
(2) It contains information substantially similar to or more
comprehensive than that required in an application submitted in this
state.
(3) It was signed by the applicant under penalty of perjury.
18912. (a) Except as otherwise provided in subdivision (b), the
department shall issue a certificate of registration to an individual
who complies with subdivision (a) of Section 18911 or whose
application has been accepted under subdivision (b) of Section 18911.
(b) The department may refuse to issue a certificate of
registration if the department determines that the applicant has
engaged in conduct that has a significant adverse effect on the
applicant's fitness to act as an athlete agent. In making the
determination, the department may consider whether the applicant has:
(1) Been convicted of a crime that, if committed in this state,
would be a crime involving moral turpitude or a felony.
(2) Made a materially false, misleading, deceptive, or fraudulent
representation in the application or as an athlete agent.
(3) Engaged in conduct that would disqualify the applicant from
serving in a fiduciary capacity.
(4) Engaged in conduct prohibited by Section 18930.
(5) Had a registration or licensure as an athlete agent suspended,
revoked, or denied or been refused renewal of registration or
licensure as an athlete agent in any state.
(6) Engaged in conduct the consequence of which was that a
sanction, suspension, or declaration of ineligibility to participate
in an interscholastic or intercollegiate athletic event was imposed
on a student athlete or educational institution.
(7) Engaged in conduct that significantly adversely reflects on
the applicant's credibility, honesty, or integrity.
(c) In making a determination under subdivision (b), the
department shall consider how recently the conduct occurred, the
nature of the conduct and the context in which it occurred, and any
other relevant conduct of the applicant.
(d) The term of a certificate of registration is two years from
the date of its issuance.
18913. (a) An athlete agent may apply to renew a registration by
submitting an application for renewal in a form prescribed by the
department. The application for renewal shall be signed by the
applicant and contain current information on all matters required in
an original registration.
(b) An individual who has submitted an application for renewal of
registration or licensure in another state, in lieu of submitting an
application for renewal in the form prescribed pursuant to
subdivision (a), may file a copy of the application for renewal and a
valid certificate of registration or licensure from the other state.
The department shall accept the application for renewal from the
other state as an application for renewal in this state if the
application to the other state meets the following criteria:
(1) It was submitted in the other state within six months next
preceding the filing in this state, and the applicant certifies the
information contained in the application for renewal is current.
(2) It contains information substantially similar to or more
comprehensive than that required in an application for renewal
submitted in this state.
(3) It was signed by the applicant under penalty of perjury.
(c) The term of the renewal of a certificate of registration is
two years from the date of its renewal.
18914. The department may issue a temporary certificate of
registration while an application for registration or renewal of
registration is pending.
18915. An application for a certificate of registration and an
application for renewal of a certificate of registration are public
records for the purposes of the California Public Records Act
(Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1
of the Government Code).
18916. (a) The department may suspend, revoke, or refuse to renew
a registration for conduct that would have justified denial of
registration under subdivision (b) of Section 18912.
(b) The department may deny, suspend, revoke, or refuse to renew a
certificate of registration or licensure only after proper notice
and an opportunity for a hearing. The proceedings under this
subdivision shall be conducted in accordance with Chapter 5
(commencing with Section 11500) of Part 1 of Division 3 of Title 2 of
the Government Code.
Article 3. Agency Contracts
18920. (a) An agency contract shall be in a record, signed or
otherwise authenticated by the parties.
(b) An agency contract shall state or contain the following:
(1) The amount and method of calculating the consideration to be
paid by the student or professional athlete for services to be
provided by the athlete agent under the contract and any other
consideration the athlete agent has received or will receive from any
other source for entering into the contract or for providing the
services.
(2) The name of any person not listed in the application for
registration or renewal of registration who will be compensated
because the student or professional athlete signed the agency
contract.
(3) A description of any expenses that the student or professional
athlete agrees to reimburse.
(4) A description of the services to be provided to the student or
professional athlete.
(5) The duration of the contract.
(6) The date of execution.
(c) Every agency contract in which a student athlete is a party
shall contain, in close proximity to the signature of the student
athlete, a conspicuous notice in boldface type in capital letters
stating the following:
"WARNING TO STUDENT ATHLETE
IF YOU SIGN THIS CONTRACT:
(1) YOU MAY LOSE YOUR ELIGIBILITY TO COMPETE AS A STUDENT ATHLETE
IN YOUR SPORT.
(2) IF YOU HAVE AN ATHLETIC DIRECTOR, WITHIN 72 HOURS AFTER
ENTERING INTO THIS CONTRACT OR BEFORE YOUR NEXT SCHEDULED ATHLETIC
EVENT, WHICHEVER OCCURS FIRST, BOTH YOU AND YOUR ATHLETE AGENT MUST
NOTIFY YOUR ATHLETIC DIRECTOR. FAILURE TO DO SO MAY RESULT IN
SIGNIFICANT CIVIL LIABILITY.
(3) YOU MAY CANCEL THIS CONTRACT WITHIN 14 DAYS AFTER SIGNING IT.
CANCELLATION OF THIS CONTRACT MAY NOT REINSTATE YOUR ELIGIBILITY."
(d) An agency contract that does not conform to this chapter is
voidable by the student or professional athlete. If a student or
professional athlete voids an agency contract, the student or
professional athlete is not required to pay any consideration under
the contract or to return any consideration received from the athlete
agent to induce the student or professional athlete to enter into
the contract.
(e) The athlete agent shall give a record of the signed or
otherwise authenticated agency contract to the student or
professional athlete at the time of execution.
18921. (a) Within 72 hours after entering into an agency contract
or before the next scheduled athletic event in which the student
athlete may participate, whichever occurs first, the athlete agent
shall give notice in a record of the existence of the contract to the
athletic director of the educational institution at which the
student athlete is enrolled or the athlete agent has reasonable
grounds to believe the student athlete intends to enroll.
(b) Within 72 hours after entering into an agency contract or
before the next athletic event in which the student athlete may
participate, whichever occurs first, the student athlete shall inform
the athletic director of the educational institution at which the
student athlete is enrolled that he or she has entered into an agency
contract.
18922. (a) A student athlete may cancel an agency contract by
giving notice of the cancellation to the athlete agent in a record
within 14 days after the contract is signed.
(b) A student athlete may not waive the right to cancel an agency
contract.
(c) If a student athlete cancels an agency contract, the student
athlete is not required to pay any consideration under the contract
or to return any consideration received from the athlete agent to
induce the student athlete to enter into the contract.
Article 4. Offenses and Enforcement
18930. (a) An athlete agent, with the intent to induce a student
or professional athlete to enter into an agency contract, may not
engage in any of the following conduct:
(1) Give any materially false or misleading information or make a
materially false promise or representation.
(2) Furnish anything of value to a student or professional athlete
before the student or professional athlete enters into the agency
contract.
(3) Furnish anything of value to any individual other than the
student or professional athlete or another registered athlete agent.
(b) An athlete agent may not intentionally engage in any of the
following conduct:
(1) Initiate contact with a student or professional athlete unless
registered under this chapter.
(2) Refuse or fail to retain or permit inspection of the records
required to be retained by Section 18950.
(3) Fail to register when required by Section 18910.
(4) Provide materially false or misleading information in an
application for registration or renewal of registration.
(5) Predate or postdate an agency contract.
(6) Fail to notify a student athlete before the student athlete
signs or otherwise authenticates an agency contract for a particular
sport that the signing or authentication may make the student athlete
ineligible to participate as a student athlete in that sport.
(7) Fail to submit a first contact notification as required by
Section 18910.5.
(8) Cause a student athlete to engage in any conduct that may
result in sanctions, penalties, or disciplinary action imposed by a
national association for the promotion or regulation of college
athletics against the student athlete or educational institution.
18931. An athlete agent who violates Section 18930 is guilty of a
misdemeanor punishable by a fine not to exceed twenty-five thousand
dollars ($25,000), by imprisonment in a county jail not to exceed one
year, or by both that fine and imprisonment. A court may suspend or
revoke the registration of any person convicted of a criminal
violation of this section.
18932. (a) A professional athlete, student athlete, or
educational institution has a right of action against an athlete
agent for damages caused by a violation of this chapter. In an action
under this section, the court may award to the prevailing party
costs and reasonable attorney's fees.
(b) Damages of a student athlete or educational institution under
subdivision (a) include losses and expenses incurred because, as a
result of the conduct of an athlete agent, the student athlete or
educational institution was injured by a violation of this chapter or
was penalized, disqualified, or suspended from participation in
athletics by a national association for the promotion and regulation
of athletics, by an athletic conference, or, in the case of an
educational institution, by reasonable self-imposed disciplinary
action taken to mitigate sanctions likely to be imposed by such an
organization.
(c) A right of action under this section does not accrue until the
professional athlete, student athlete, or educational institution
discovers or by the exercise of reasonable diligence would have
discovered the violation by the athlete agent.
(d) This chapter does not restrict rights, remedies, or defenses
of any person under law or equity.
18933. The department may assess a civil penalty against an
athlete agent not to exceed twenty-five thousand dollars ($25,000)
for a violation of this chapter. The provisions of paragraphs (1),
(2), (4), and (5) of subdivision (b) of Section 125.9 apply to the
assessment of a civil penalty made under this section.
Article 5. Revenue
18940. An application for registration or renewal of registration
shall be accompanied by a fee, the amount of which shall be
established by regulation promulgated by the department. This fee
shall be an amount that is sufficient to fund the costs of
administering this chapter and to repay the loan authorized pursuant
to Section 18942.
18941. All fees collected pursuant to Section 18940 and all civil
penalties collected pursuant to Section 18933 shall be deposited
into the Athlete Agent Registration Fund, which is hereby created.
The department may expend, for the purposes of this chapter, the
moneys deposited into this fund upon appropriation by the
Legislature.
18942. In order to implement this chapter, the Director of
Finance shall approve a loan from the Labor Enforcement and
Compliance Fund to the department for startup costs, which shall be
repaid from the fee revenue collected pursuant to Section 18940.
Funds loaned pursuant to this section shall be repaid on or before
July 1, 2014, together with interest calculated at a rate that is
equal to that earned by moneys invested in the Pooled Money
Investment Account.
Article 6. Miscellaneous
18950. (a) An athlete agent shall retain the following records
for a period of five years:
(1) The name and address of each individual represented by the
athlete agent.
(2) Any agency contract entered into by the athlete agent.
(3) Any direct costs incurred by the athlete agent in the
recruitment or solicitation of a student or professional athlete to
enter into an agency contract.
(b) Records required by subdivision (a) to be retained are open to
inspection by the department during normal business hours.
18951. By acting as an athlete agent in this state, a nonresident
individual appoints the department as the individual's agent for
service of process in any civil action in this state related to the
individual's acting as an athlete agent in this state.
18952. The department may issue subpoenas for any material that
is relevant to the administration of this chapter.
18953. This chapter modifies, limits, and supersedes the federal
Electronic Signatures in Global and National Commerce Act (15 U.S.C.
Sec. 7001, et seq.), but does not modify, limit, or supersede Section
101(c) of that act (15 U.S.C. Sec. 7001(c)) or authorize electronic
delivery of any of the notices described in Section 103(b) of that
act (15 U.S.C. Sec. 7003(b)).
18954. The provisions of this chapter are taken from the Uniform
Athlete Agents Act of 2000, drafted by the National Conference of
Commissioners on Uniform State Laws. In applying and construing the
provisions of this chapter, consideration shall be given to the need
to promote uniformity of the law with respect to its subject matter
among states that enact
it.
18955. The department may, in accordance with Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code, adopt, amend, and repeal any regulations
reasonably necessary for the purpose of administering this chapter
and consistent with this chapter.
18956. (a) The athlete agent shall establish a trust fund if the
athlete agent is the recipient of a professional athlete's salary. An
athlete agent who receives any payment on behalf of a professional
athlete shall immediately deposit the payment in a trust fund account
maintained by the athlete agent in a state or federally chartered
financial institution. The department may require an athlete agent
who receives any payment on behalf of a professional athlete to post
a surety bond in an amount established by regulation.
(b) The department may require proof of the validity of the trust
fund. The department may promulgate regulations defining the
standards to comply with this requirement.
18957. (a) (1) No athlete agent shall have an ownership or
financial interest in any entity that is directly involved in the
same sport as a student athlete whom the agent directly or indirectly
recruits or solicits to enter into an agency contract, or for whom
the athlete agent is attempting to negotiate an endorsement contract,
or professional sports service contract, or for whom the athlete
agent provides advice concerning potential or actual employment as a
professional athlete.
(2) An athlete agent shall disclose to a professional athlete the
agent's ownership or financial interest in any entity that is
directly involved in the same sport as the professional athlete with
whom the athlete agent has entered into an agency contract, or for
whom the athlete agent is attempting to negotiate an endorsement
contract, or professional sports service contract, or for whom the
athlete agent provides advice concerning potential or actual
employment as a professional athlete.
(b) If an athlete agent or athlete agent's representative or
employee provides financial services to a professional athlete or
student athlete or advises the athlete concerning investment of
funds, the athlete agent shall disclose to the athlete any ownership
interest the athlete agent, representative, or employee has in any
entity regarding which the athlete agent, representative, or employee
is providing financial services or giving advice, and any commission
the athlete agent, representative, or employee will receive from the
athlete's investment.
(c) No athlete agent shall divide fees with, or receive
compensation from, a professional sports league, team, or other
organization or its representatives or employees, which fees or
compensation are directly related to a professional sports services
contract or other representation of the league, team, or organization
as it directly relates to the employment of athletes for
professional sports services. No athlete agent shall offer or allow
any full-time employee of a union or players' association connected
with professional sports to own or participate in any of the revenues
of the athlete agent.
(d) No athlete agent or athlete agent's representative or employee
shall offer or provide money or anything of benefit or value,
including, but not limited to, free or reduced price legal services,
to any elementary or secondary school, college, university, or other
educational institution, or any representative or employee of any of
these educational institutions in return for the referral of any
clients.
(e) All forms of advertising used by an athlete agent within the
state shall include the name and business address of the athlete
agent.
18958. No athlete agent shall knowingly secure employment for a
person in any place where a strike, lockout, or other labor trouble
exists, without notifying the person of those conditions.
18959. (a) No athlete agent shall knowingly enter into a contract
containing any term or condition that, if complied with, would be in
violation of law, or attempt to fill an order for help to be
employed in violation of the law.
(b) No person shall owe an athlete agent any money or other
consideration pursuant to a professional sports services contract, an
endorsement contract, or a financial services contract negotiated by
the athlete agent if the athlete agent fails to comply with any
provision of this chapter. The athlete agent shall refund any money
or other consideration he or she received pursuant to that contract.
18960. The provisions of this chapter are severable. If any
provision of this chapter or its application is held invalid, that
invalidity shall not affect other provisions or applications that can
be given effect without the invalid provision or application.
18961. This chapter shall become operative on July 1, 2011,
except that Section 18933 shall become operative on January 1, 2012.
SEC. 5. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.
