First Substitute S.B. 60

Senator Lyle W. Hillyard proposes to substitute the following bill:

1 UNIFORM ATHLETE AGENTS ACT
2 2001 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Lyle W. Hillyard
5 This act enacts the Uniform Athlete Agents Act. The act defines terms. The act requires
6 registration of athlete agents and describes the form of the application for registration. The
7 act creates requirements for agency contracts including warnings to student athletes. The
8 act requires a student-athlete to notify the educational institution where the student is
9 enrolled within 72 hours of signing an agency contract. The act allows a student-athlete to
10 cancel an agency contract within 14 days after it is signed. The act requires an athlete agent
11 to retain records. The act prohibits an athlete agent from engaging in certain conduct. The
12 act provides criminal, civil, and administrative penalties.
13 This act affects sections of Utah Code Annotated 1953 as follows:
14 ENACTS:
15 15-9-101, Utah Code Annotated 1953
16 15-9-102, Utah Code Annotated 1953
17 15-9-103, Utah Code Annotated 1953
18 15-9-104, Utah Code Annotated 1953
19 15-9-105, Utah Code Annotated 1953
20 15-9-106, Utah Code Annotated 1953
21 15-9-107, Utah Code Annotated 1953
22 15-9-108, Utah Code Annotated 1953
23 15-9-109, Utah Code Annotated 1953
24 15-9-110, Utah Code Annotated 1953
25 15-9-111, Utah Code Annotated 1953

26 15-9-112, Utah Code Annotated 1953
27 15-9-113, Utah Code Annotated 1953
28 15-9-114, Utah Code Annotated 1953
29 15-9-115, Utah Code Annotated 1953
30 15-9-116, Utah Code Annotated 1953
31 15-9-117, Utah Code Annotated 1953
32 15-9-118, Utah Code Annotated 1953
33 15-9-119, Utah Code Annotated 1953
34 Be it enacted by the Legislature of the state of Utah:
35 Section 1. Section 15-9-101 is enacted to read:
36 CHAPTER 9. UNIFORM ATHLETE AGENTS ACT
37 15-9-101. Title.
38 This chapter is known as the "Uniform Athlete Agents Act."
39 Section 2. Section 15-9-102 is enacted to read:
40 15-9-102. Definitions.
41 As used in this chapter:
42 (1) "Agency contract" means an agreement in which a student-athlete authorizes a person
43 to negotiate or solicit on behalf of the student-athlete a professional-sports-services contract or an
44 endorsement contract.
45 (2) "Athlete agent" means an individual who enters into an agency contract with a
46 student-athlete or, directly or indirectly, recruits or solicits a student-athlete to enter into an agency
47 contract. The term includes an individual who represents to the public that the individual is an
48 athlete agent. The term does not include a spouse, parent, sibling, or grandparent of the
49 student-athlete or an individual acting solely on behalf of a professional sports team or professional
50 sports organization.
51 (3) "Athletic director" means an individual responsible for administering the overall
52 athletic program of an educational institution or, if an educational institution has separately
53 administered athletic programs for male students and female students, the athletic program for
54 males or the athletic program for females, as appropriate.
55 (4) "Contact" means a communication, direct or indirect, between an athlete agent and a
56 student-athlete, to recruit or solicit the student-athlete to enter into an agency contract.

57 (5) "Division" means the Division of Occupational and Professional Licensing created in
58 Section 58-1-103 .
59 (6) "Endorsement contract" means an agreement under which a student-athlete is employed
60 or receives consideration to use on behalf of the other party any value that the student-athlete may
61 have because of publicity, reputation, following, or fame obtained because of athletic ability or
62 performance.
63 (7) "Intercollegiate sport" means a sport played at the collegiate level for which eligibility
64 requirements for participation by a student-athlete are established by a national association for the
65 promotion or regulation of collegiate athletics.
66 (8) "Person" means an individual, corporation, business trust, estate, trust, partnership,
67 limited liability company, association, joint venture, government; governmental subdivision,
68 agency, or instrumentality; public corporation, or any other legal or commercial entity.
69 (9) "Professional-sports-services contract" means an agreement under which an individual
70 is employed or agrees to render services as a player on a professional sports team, with a
71 professional sports organization, or as a professional athlete.
72 (10) "Record" means information that is inscribed on a tangible medium or that is stored
73 in an electronic or other medium and is retrievable in perceivable form.
74 (11) "Registration" means registration as an athlete agent pursuant to this chapter.
75 (12) "State" means a state of the United States, the District of Columbia, Puerto Rico, the
76 United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the
77 United States.
78 (13) "Student-athlete" means an individual who engages in, is eligible to engage in, or may
79 be eligible in the future to engage in, any intercollegiate sport. If an individual is permanently
80 ineligible to participate in a particular intercollegiate sport, the individual is not a student-athlete
81 for purposes of that sport.
82 Section 3. Section 15-9-103 is enacted to read:
83 15-9-103. Administration -- Rulemaking -- Service of process -- h [ Subpoenas ] Athlete
83a Agents Licensing Board h .
84 (1) (a) This chapter shall be administered by the Division of Occupational and Professional
85 Licensing and is subject h [ only ] h to the requirements of Title 58, Chapter 1, h [ Part 1, Division
86 Administration S , AND PART 2, BOARDS , s but not to any of the other requirements of Title 58,
86a Chapter 1, ] h Division of
87 Occupational and Professional Licensing Act h SO LONG AS THE REQUIREMENTS OF TITLE 58,
87a CHAPTER 1 ARE NOT INCONSISTENT WITH THE REQUIREMENTS OF THIS CHAPTER h .

88 (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
89 division may make rules necessary to implement the provisions of this chapter.
90 (2) By acting as an athlete agent in this state, a nonresident individual appoints the director
91 of the division as the individual's agent for service of process in any civil action in this state related
92 to the individual's acting as an athlete agent in this state.
92a h (3)(a) THERE IS CREATED THE ATHLETE AGENTS LICENSING BOARD CONSISTING OF
92b FOUR ATHLETE AGENTS AND ONE MEMBER OF THE GENERAL PUBLIC.
92c (b) THE ATHLETE AGENTS LICENSING BOARD SHALL BE APPOINTED AND SERVE IN
92d ACCORDANCE WITH SECTION 58-1-201.
92e (c) THE DUTIES AND RESPONSIBILITIES OF THE ATHLETE AGENTS LICENSING BOARD ARE
92f IN ACCORDANCE WITH SECTIONS 58-1-202 AND 58-1-203.
92g (d) IN ADDITION, THE ATHLETE AGENTS LICENSING BOARD SHALL DESIGNATE ONE OF
92h ITS MEMBERS ON A PERMANENT OR ROTATING BASIS TO:
92i (i) ASSIST THE DIVISION IN REVIEWING COMPLAINTS CONCERNING THE UNLAWFUL OR
92j UNPROFESSIONAL CONDUCT OF A LICENSEE; AND
92k (ii) ADVISE THE DIVISION IN ITS INVESTIGATION OF THESE COMPLAINTS.
92l (e) A MEMBER OF THE ATHLETE AGENTS LICENSING BOARD WHO HAS, UNDER
92m SUBSECTION (3)(d), REVIEWED A COMPLAINT OR ADVISED IN ITS INVESTIGATION MAY BE
92n DISQUALIFIED FROM PARTICIPATING WITH THE BOARD WHEN THE BOARD SERVES AS A
92o PRESIDING OFFICER IN AN ADJUDICATIVE PROCEEDING CONCERNING THE COMPLAINT. h
93 Section 4. Section 15-9-104 is enacted to read:
94 15-9-104. Athlete agents -- Registration required -- Void contracts.
95 (1) Except as otherwise provided in Subsection (2), an individual may not act as an athlete
96 agent in this state without holding a certificate of registration under Section 15-9-106 or 15-9-108 .
97 (2) Before being issued a certificate of registration, an individual may act as an athlete
98 agent in this state for all purposes except signing an agency contract, if:
99 (a) a student-athlete or another person acting on behalf of the student-athlete initiates
100 communication with the individual; and
101 (b) within seven days after an initial act as an athlete agent, the individual submits an
102 application for registration as an athlete agent in this state.
103 (3) An agency contract resulting from conduct in violation of this section is void and the
104 athlete agent shall return any consideration received under the contract.
105 Section 5. Section 15-9-105 is enacted to read:
106 15-9-105. Registration as an athlete agent -- Form -- Requirements.
107 (1) An applicant for registration shall submit an application for registration to the division
108 in a form prescribed by the division. An application filed under this section is a public record

109 under Title 63, Chapter 2, Government Records Access and Management Act. The application
110 must be in the name of an individual and, except as otherwise provided in Subsection (2), signed
111 or otherwise authenticated by the applicant under penalty of perjury and state or contain:
112 (a) the name of the applicant and the address of the applicant's principal place of business;
113 (b) the name of the applicant's business or employer, if applicable;
114 (c) any business or occupation engaged in by the applicant for the five years immediately
115 preceding the date of submission of the application;
116 (d) a description of the applicant's:
117 (i) formal training as an athlete agent;
118 (ii) practical experience as an athlete agent; and

119 (iii) educational background relating to the applicant's activities as an athlete agent;
120 (e) the names and addresses of three individuals not related to the applicant who are
121 willing to serve as references;
122 (f) the name, sport, and last-known team for each individual for whom the applicant acted
123 as an athlete agent during the five years next preceding the date of submission of the application;
124 (g) the names and addresses of all persons who are:
125 (i) with respect to the athlete agent's business if it is not a corporation, the partners,
126 members, officers, managers, associates, or profit-sharers of the business; and
127 (ii) with respect to a corporation employing the athlete agent, the officers, directors, and
128 any shareholder of the corporation having an interest of 5% or greater;
129 (h) whether the applicant or any person named pursuant to Subsection (1)(g) has been
130 convicted of a crime that, if committed in this state, would be a crime involving moral turpitude
131 or a felony, and identify the crime;
132 (i) whether there has been any administrative or judicial determination that the applicant
133 or any person named pursuant to Subsection (1)(g) has made a false, misleading, deceptive, or
134 fraudulent representation;
135 (j) any instance in which the conduct of the applicant or any person named pursuant to
136 Subsection (1)(g) resulted in the imposition of a sanction, suspension, or declaration of ineligibility
137 to participate in an interscholastic or intercollegiate athletic event on a student-athlete or
138 educational institution;
139 (k) any sanction, suspension, or disciplinary action taken against the applicant or any
140 person named pursuant to Subsection (1)(g) arising out of occupational or professional conduct;
141 and
142 (l) whether there has been any denial of an application for, suspension or revocation of,
143 or refusal to renew, the registration or licensure of the applicant or any person named pursuant to
144 Subsection (1)(g) as an athlete agent in any state.
145 (2) An individual who has submitted an application for, and holds a certificate of,
146 registration or licensure as an athlete agent in another state, may submit a copy of the application
147 and certificate in lieu of submitting an application in the form prescribed pursuant to Subsection
148 (1). The division shall accept the application and the certificate from the other state as an
149 application for registration in this state if the application to the other state:

150 (a) was submitted in the other state within six months immediately preceding the
151 submission of the application in this state and the applicant certifies that the information contained
152 in the application is current;
153 (b) contains information substantially similar to or more comprehensive than that required
154 in an application submitted in this state; and
155 (c) was signed by the applicant under penalty of perjury.
156 Section 6. Section 15-9-106 is enacted to read:
157 15-9-106. Certificate of registration -- Issuance or denial -- Renewal.
158 (1) Except as otherwise provided in Subsection (2), the division shall issue a certificate
159 of registration to an individual who complies with Subsection 15-9-105 (1) or whose application
160 has been accepted under Subsection 15-9-105 (2).
161 (2) The division may refuse to issue a certificate of registration if the division determines
162 that the applicant has engaged in conduct that has a significant adverse effect on the applicant's
163 fitness to act as an athlete agent. In making the determination, the division may consider whether
164 the applicant has:
165 (a) been convicted of a crime that, if committed in this state, would be a crime involving
166 moral turpitude or a felony;
167 (b) made a materially false, misleading, deceptive, or fraudulent representation in the
168 application or as an athlete agent;
169 (c) engaged in conduct that would disqualify the applicant from serving in a fiduciary
170 capacity;
171 (d) engaged in conduct prohibited by Section 15-9-114 ;
172 (e) had a registration or licensure as an athlete agent suspended, revoked, or denied or been
173 refused renewal of registration or licensure as an athlete agent in any state;
174 (f) engaged in conduct the consequence of which was that a sanction, suspension, or
175 declaration of ineligibility to participate in an interscholastic or intercollegiate athletic event was
176 imposed on a student-athlete or educational institution; or
177 (g) engaged in conduct that significantly, adversely reflects on the applicant's credibility,
178 honesty, or integrity.
179 (3) In making a determination under Subsection (2), the division shall consider:
180 (a) how recently the conduct occurred;

181 (b) the nature of the conduct and the context in which it occurred; and
182 (c) any other relevant conduct of the applicant.
183 (4) An athlete agent may apply to renew a registration by submitting an application for
184 renewal in a form prescribed by the division. An application filed under this section is a public
185 record under Title 63, Chapter 2, Government Records Access and Management Act. The
186 application for renewal must be signed by the applicant under penalty of perjury and must contain
187 current information on all matters required in an original registration.
188 (5) An individual who has submitted an application for renewal of registration or licensure
189 in another state, in lieu of submitting an application for renewal in the form prescribed pursuant
190 to Subsection (4), may file a copy of the application for renewal and a valid certificate of
191 registration or licensure from the other state. The division shall accept the application for renewal
192 from the other state as an application for renewal in this state if the application to the other state:
193 (a) was submitted in the other state within six months immediately preceding the filing in
194 this state and the applicant certifies the information contained in the application for renewal is
195 current;
196 (b) contains information substantially similar to or more comprehensive than that required
197 in an application for renewal submitted in this state; and
198 (c) was signed by the applicant under penalty of perjury.
199 (6) A certificate of registration or a renewal of a registration is valid for two years.
200 Section 7. Section 15-9-107 is enacted to read:
201 15-9-107. Suspension, revocation, or refusal to renew registration.
202 (1) The division may suspend, revoke, or refuse to renew a registration for conduct that
203 would have justified denial of registration under Subsection 15-9-106 (2).
204 (2) The division may suspend, revoke, or refuse to renew a certificate of registration or
205 licensure only after proper notice and an opportunity for a hearing. Title 63, Chapter 46b,
206 Administrative Procedures Act, applies to this chapter.
207 Section 8. Section 15-9-108 is enacted to read:
208 15-9-108. Temporary registration.
209 The division may issue a temporary certificate of registration while an application for
210 registration or renewal of registration is pending.
211 Section 9. Section 15-9-109 is enacted to read:

212 15-9-109. Registration and renewal fees.
213 (1) An application for registration or renewal of registration must be accompanied by a fee
214 in an amount determined by the division in accordance with Section 63-38-3.2 .
215 (2) The division shall establish fees for:
216 (a) an initial application for registration;
217 (b) an application for registration based upon a certificate of registration or licensure
218 issued by another state;
219 (c) an application for renewal of registration; and
220 (d) an application for renewal of registration based upon an application for renewal of
221 registration or licensure submitted in another state.
222 Section 10. Section 15-9-110 is enacted to read:
223 15-9-110. Required form of contract.
224 (1) An agency contract must be in a record, signed or otherwise authenticated by the
225 parties.
226 (2) An agency contract must state or contain:
227 (a) the amount and method of calculating the consideration to be paid by the
228 student-athlete for services to be provided by the athlete agent under the contract and any other
229 consideration the athlete agent has received or will receive from any other source for entering into
230 the contract or for providing the services;
231 (b) the name of any person not listed in the application for registration or renewal of
232 registration who will be compensated because the student-athlete signed the agency contract;
233 (c) a description of any expenses that the student-athlete agrees to reimburse;
234 (d) a description of the services to be provided to the student-athlete;
235 (e) the duration of the contract; and
236 (f) the date of execution.
237 (3) An agency contract must contain, in close proximity to the signature of the
238 student-athlete, a conspicuous notice in boldface type in capital letters stating:
239 WARNING TO STUDENT-ATHLETE
240 IF YOU SIGN THIS CONTRACT:
241 (1) YOU MAY LOSE YOUR ELIGIBILITY TO COMPETE AS A
242 STUDENT-ATHLETE IN YOUR SPORT;

243 (2) IF YOU HAVE AN ATHLETIC DIRECTOR, WITHIN 72 HOURS AFTER
244 ENTERING INTO THIS CONTRACT, BOTH YOU AND YOUR ATHLETE AGENT MUST
245 NOTIFY YOUR ATHLETIC DIRECTOR; AND
246 (3) YOU MAY CANCEL THIS CONTRACT WITHIN 14 DAYS AFTER SIGNING IT.
247 CANCELLATION OF THIS CONTRACT MAY NOT REINSTATE YOUR ELIGIBILITY.
248 (4) An agency contract that does not conform to this section is voidable by the
249 student-athlete. If a student-athlete voids an agency contract, the student-athlete is not required
250 to pay any consideration under the contract or to return any consideration received from the athlete
251 agent to induce the student-athlete to enter into the contract.
252 (5) The athlete agent shall give a record of the signed or otherwise authenticated agency
253 contract to the student-athlete at the time of execution.
254 Section 11. Section 15-9-111 is enacted to read:
255 15-9-111. Notice to educational institution.
256 (1) Within 72 hours after entering into an agency contract or before the next scheduled
257 athletic event in which the student-athlete may participate, whichever occurs first, the athlete agent
258 shall give notice in a record of the existence of the contract to the athletic director of the
259 educational institution at which the student-athlete is enrolled or the athlete agent has reasonable
260 grounds to believe the student-athlete intends to enroll.
261 (2) Within 72 hours after entering into an agency contract or before the next athletic event
262 in which the student-athlete may participate, whichever occurs first, the student-athlete shall
263 inform the athletic director of the educational institution at which the student-athlete is enrolled
264 that he or she has entered into an agency contract.
265 Section 12. Section 15-9-112 is enacted to read:
266 15-9-112. Student-athlete's right to cancel.
267 (1) A student-athlete may cancel an agency contract by giving notice of the cancellation
268 to the athlete agent in a record within 14 days after the contract is signed.
269 (2) A student-athlete may not waive the right to cancel an agency contract.
270 (3) If a student-athlete cancels an agency contract, the student-athlete is not required to pay
271 any consideration under the contract or to return any consideration received from the athlete agent
272 to induce the student-athlete to enter into the contract.
273 Section 13. Section 15-9-113 is enacted to read:

274 15-9-113. Required records.
275 (1) An athlete agent shall retain the following records for a period of five years:
276 (a) the name and address of each individual represented by the athlete agent;
277 (b) any agency contract entered into by the athlete agent; and
278 (c) any direct costs incurred by the athlete agent in the recruitment or solicitation of a
279 student-athlete to enter into an agency contract.
280 (2) Records required by Subsection (1) to be retained are open to inspection by the division
281 during normal business hours.
282 Section 14. Section 15-9-114 is enacted to read:
283 15-9-114. Prohibited conduct.
284 (1) An athlete agent, with the intent to induce a student-athlete to enter into an agency
285 contract, may not:
286 (a) give any materially false or misleading information or make a materially false promise
287 or representation;
288 (b) furnish anything of value to a student-athlete before the student-athlete enters into the
289 agency contract; or
290 (c) furnish anything of value to any individual other than the student-athlete or another
291 registered athlete agent.
292 (2) An athlete agent may not intentionally:
293 (a) initiate contact with a student-athlete unless registered under this chapter;
294 (b) refuse or fail to retain or permit inspection of the records required to be retained by
295 Section 15-9-113 ;
296 (c) fail to register when required by Section 15-9-104 ;
297 (d) provide materially false or misleading information in an application for registration or
298 renewal of registration;
299 (e) predate or postdate an agency contract; or
300 (f) fail to notify a student-athlete before the student-athlete signs or otherwise authenticates
301 an agency contract for a particular sport that the signing or authentication may make the
302 student-athlete ineligible to participate as a student-athlete in that sport.
303 Section 15. Section 15-9-115 is enacted to read:
304 15-9-115. Criminal penalties.

305 An athlete agent who violates Section 15-9-114 is guilty of a class A misdemeanor.
306 Section 16. Section 15-9-116 is enacted to read:
307 15-9-116. Civil remedies.
308 (1) An educational institution has a right of action against an athlete agent or a former
309 student-athlete for damages caused by a violation of this chapter. In an action under this section,
310 the court may award to the prevailing party costs and reasonable attorney's fees.
311 (2) Damages of an educational institution under Subsection (1) include losses and
312 expenses incurred because, as a result of the conduct of an athlete agent or former student-athlete,
313 the educational institution was injured by a violation of this chapter or was penalized, disqualified,
314 or suspended from participation in athletics by a national association for the promotion and
315 regulation of athletics, by an athletic conference, or by reasonable self-imposed disciplinary action
316 taken to mitigate sanctions likely to be imposed by such an organization.
317 (3) A right of action under this section does not accrue until the educational institution
318 discovers or by the exercise of reasonable diligence would have discovered the violation by the
319 athlete agent or former student-athlete.
320 (4) Any liability of the athlete agent or the former student-athlete under this section is
321 several and not joint.
322 (5) This chapter does not restrict rights, remedies, or defenses of any person under law or
323 equity.
324 Section 17. Section 15-9-117 is enacted to read:
325 15-9-117. Civil and administrative penalty.
326 (1) The division may assess a civil penalty against an athlete agent not to exceed $25,000
327 for a violation of this chapter.
328 (2) An administrative penalty collected under Subsection (1) shall be deposited into the
329 h [ General Fund ] COMMERCE SERVICE FUND CREATED IN SECTION 13-1-2 h .
330 Section 18. Section 15-9-118 is enacted to read:
331 15-9-118. Uniformity of application and construction.
332 In applying and construing this uniform act, consideration must be given to the need to
333 promote uniformity of the law with respect to its subject matter among states that enact it.
334 Section 19. Section 15-9-119 is enacted to read:
335 15-9-119. Electronic Signatures in Global and National Commerce Act.

336 The provisions of this chapter governing the legal effect, validity, or enforceability of
337 electronic records or signatures, and of contracts formed or performed with the use of such records
338 or signatures conform to the requirements of Section 102 of the Electronic Signatures in Global
339 and National Commerce Act, Pub. L. No. 106-229, 114 Stat. 464 (2000), and supersede, modify,
340 and limit the Electronic Signatures in Global and National Commerce Act.