Senate Study Bill 1039 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON JUDICIARY BILL BY CHAIRPERSON ZAUN) A BILL FOR An Act relating to prohibited conduct by athlete agents and 1 making penalties applicable. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1428XC (1) 89 je/jh

S.F. _____ Section 1. Section 9A.114, Code 2021, is amended to read as 1 follows: 2 9A.114 Prohibited conduct. 3 1. An athlete agent , with the intent to influence a student 4 athlete or, if the student athlete is a minor, the parent 5 or guardian of the student athlete, to enter into an agency 6 contract, shall not intentionally take any of the following 7 actions or encourage any other individual to take or assist 8 any other individual in taking any of the following actions on 9 behalf of the agent : 10 a. 1. Give a student athlete or, if the athlete is a 11 minor, a parent or guardian of the athlete, materially false 12 or misleading information or make a materially false promise 13 or representation with the intent to influence the athlete, 14 parent, or guardian to enter into an agency contract . 15 b. 2. Furnish anything of value to the a student athlete 16 before the athlete enters into the contract. or another 17 individual, if doing so may result in loss of the athlete’s 18 eligibility to participate in the athlete’s sport, unless all 19 of the following actions are taken: 20 c. Furnish anything of value to an individual other than the 21 athlete or another registered athlete agent. 22 2. An athlete agent shall not intentionally do any of the 23 following or encourage any other individual to do any of the 24 following on behalf of the agent: 25 a. The agent notifies the athletic director of the 26 educational institution at which the athlete is enrolled, or at 27 which the agent has reasonable grounds to believe the athlete 28 intends to enroll, not later than seventy-two hours after 29 furnishing the thing of value. 30 b. The student athlete or, if the athlete is a minor, a 31 parent or guardian of the athlete, acknowledges to the agent 32 in a record that receipt of the thing of value may result in 33 the loss of the athlete’s eligibility to participate in the 34 athlete’s sport. 35 -1- LSB 1428XC (1) 89 je/jh 1/ 3

S.F. _____ a. 3. Initiate contact, directly or indirectly, with a 1 student athlete or, if the athlete is a minor, a parent or 2 guardian of the athlete, to recruit or solicit the athlete, 3 parent, or guardian to enter an agency agreement unless 4 registered under this chapter . 5 b. 4. Fail to create , or retain , or to permit inspection of 6 the records required by section 9A.113 . 7 c. 5. Fail to register when required by section 9A.104 . 8 d. 6. Provide materially false or misleading information in 9 an application for registration or renewal of registration. 10 e. 7. Predate or postdate an agency contract. 11 f. 8. Fail to notify a student athlete or, if the athlete 12 is a minor, a parent or guardian of the athlete before the 13 athlete, parent, or guardian signs an agency contract for 14 a particular sport that the signing may make the athlete 15 ineligible result in the loss of the athlete’s eligibility 16 to participate as a student athlete in that in the athlete’s 17 sport. 18 9. Encourage another individual to take any of the actions 19 described in subsections 1 through 8 on behalf of the agent. 20 10. Encourage another individual to assist any other 21 individual in taking in any of the actions described in 22 subsections 1 through 8 on behalf of the agent. 23 EXPLANATION 24 The inclusion of this explanation does not constitute agreement with 25 the explanation’s substance by the members of the general assembly. 26 This bill relates to prohibited conduct by athlete agents 27 under Code chapter 9A. 28 The bill strikes language prohibiting an agent from 29 furnishing anything of value to a student athlete before the 30 athlete enters into an agency contract and also prohibiting 31 furnishing anything of value to an individual other than the 32 athlete or another registered athlete agent. The bill instead 33 prohibits furnishing anything of value to an athlete or another 34 individual, if doing so may result in loss of the athlete’s 35 -2- LSB 1428XC (1) 89 je/jh 2/ 3

S.F. _____ eligibility to participate in the athlete’s sport, unless two 1 actions occur. The agent must notify the athletic director of 2 the educational institution at which the athlete is enrolled, 3 or at which the agent has reasonable grounds to believe the 4 athlete intends to enroll, not later than 72 hours after 5 furnishing the thing of value. The athlete or, if the athlete 6 is a minor, a parent or guardian of the athlete, must also 7 acknowledge to the agent in a record that receipt of the thing 8 of value may result in the loss of the athlete’s eligibility to 9 participate in the athlete’s sport. 10 The bill prohibits an agent from encouraging another 11 individual to engage in conduct prohibited for agents, or from 12 encouraging another individual to assist any other individual 13 in engaging in conduct prohibited for agents. 14 The bill modifies prohibited conduct, other than giving 15 materially false or misleading information or making a 16 materially false promise or representation, by prohibiting 17 such conduct when engaged in intentionally, rather than with 18 the intent to influence an athlete or the athlete’s parent or 19 guardian to enter into an agency contract. 20 By operation of law, a violation of these requirements by an 21 athlete agent is a serious misdemeanor. A serious misdemeanor 22 is punishable by confinement for no more than one year and a 23 fine of at least $430 but not more than $2,560. A violation 24 may also result in a civil action for damages, a civil penalty 25 of up to $50,000, or the secretary of state refusing to 26 issue, limiting, suspending, revoking, or refusing to renew a 27 certificate of registration as an athlete agent. 28 -3- LSB 1428XC (1) 89 je/jh 3/ 3