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COMMITTEE REPORT
May 13, 2004
S. Printed 5/13/04--H. [SEC 5/17/04 2:24 PM]
Read the first time April 29, 2004.
To whom was referred a Bill (S. 759) to amend Chapter 102 of Title 59, Code of Laws of South Carolina, 1976, relating to athlete agents and student athletes, so as to enact the "Uniform Athlete Agents Act of 2004", etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass with amendment:
Amend the bill, as and if amended, by striking all after the enacting words and inserting:
/ SECTION 1. Chapter 102, Title 59 of the 1976 Code, as added by Act 456 of 1990, is amended to read:
Section 59-102-10. As used in this chapter:
(1) 'Agent contract' means a contract or agreement pursuant to which a student athlete authorizes an athlete agent to represent him in the marketing of his athletic ability or reputation in a sport.
(2) 'Athlete agent' means a person who, directly or indirectly, recruits or solicits a student athlete to enter into an agent contract, or who for a fee procures, offers, promises, or attempts to obtain employment for a student athlete with a professional sports team or as a professional athlete.
(3) 'Student athlete' means an athlete who practices for or otherwise participates in intercollegiate athletics at a college or university that is located in this State. This chapter may be cited as the 'Uniform Athlete Agents Act of 2004'.
Section 59-102-20. (A) Each athlete agent shall register biennially with the Department of Consumer Affairs on forms to be provided by the department and, at the same time, pay to the department a registration fee of three hundred dollars, for which the department shall issue a certificate of authority entitling the holder to operate as an athlete agent for two years. The department may revoke or suspend the registration of an athlete agent for cause or for a violation of any provision of this chapter.
(B) When the business address of an athlete agent operating in this State is changed, the agent shall notify the department within thirty days after the change of address.
(C) It is unlawful for a person to operate as an athlete agent unless he is registered as provided in this section. A person who violates this section is guilty of a felony and, upon conviction, must be punished by a fine of five thousand dollars or by imprisonment for five years, or both. In this chapter:
(1) 'Agency contract' means an agreement in which a student athlete authorizes a person to negotiate or solicit on behalf of the student athlete a professional sports services contract or an endorsement contract.
(2) '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, sibling, grandparent, or guardian of the student athlete or an individual acting solely on behalf of a professional sports team or professional sports organization.
(3) '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.
(4) 'Contact' means a communication, direct or indirect, between an athlete agent and a student athlete to recruit or solicit the student athlete to enter into an agency contract.
(5) 'Endorsement contract' means an agreement under which a student athlete is employed or receives consideration to use a product or service based on value the student athlete has because of publicity, reputation, following, or fame obtained from athletic ability or performance.
(6) '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.
(7) 'Person' means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, public corporation, other legal or commercial entity, or government, governmental subdivision, agency, or instrumentality.
(8) '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.
(9) '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.
(10) 'Registration' means registration as an athlete agent pursuant to this chapter.
(11) 'State' means the State of South Carolina when referring to this State or 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 when referring to another state.
(12) 'Student athlete' means an individual who engages in, is eligible to engage in, or may be eligible in the future to engage in an 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.
Section 59-102-30. (A) A student athlete who is subject to the rules and regulations of the National Collegiate Athletic Association, the National Association for Intercollegiate Athletics, or the National Junior College Athletic Association, who has not completed his last intercollegiate contest including postseason games for the applicable sport, and who enters into an agent contract with an athlete agent or a contract pursuant to which an athlete is employed as a professional athlete, shall notify the athletic director or the president of the college or university in which he is enrolled and the Administrator of the Department of Consumer Affairs that he has entered into such a contract. Written notification of entering into a contract must be given before practicing for or participating in an athletic event on behalf of a college or university or within seventy-two hours after entering into the contract, whichever occurs first. A student athlete who fails to provide this notification is guilty of a misdemeanor and, upon conviction, must be punished by a fine of one thousand dollars or by imprisonment for one year, or both.
(B) An athlete agent who enters into an agent contract with a student athlete who is subject to the rules and regulations of the National Collegiate Athletic Association, the National Association for Intercollegiate Athletics, or the National Junior College Athletic Association shall notify the athletic director or the president of the college or university in which the student athlete is enrolled and the Administrator of the Department of Consumer Affairs that the student athlete has entered into such a contract. Written notification of the contract must be given before the student athlete's practicing for or participating in an athletic event on behalf of a college or university or within seventy-two hours after entering into the contract, whichever occurs first. An athlete agent who fails to provide this notification is guilty of a felony and, upon conviction, must be punished by a fine of five thousand dollars or by imprisonment for five years, or both.
(C) A student athlete or athlete agent who enters into a contract before October 1, 1990, is subject to the notification requirements of this section as of October 1, 1990. Thereafter, they are subject to these notification requirements immediately in the manner required by this section.
(D) An agent contract between a student athlete and an athlete agent must have a notice printed near the space for the student athlete's signature which must contain the following statement in ten-point bold-faced type:
'WARNING: IF YOU AS A STUDENT ATHLETE SIGN THIS CONTRACT, YOU MAY LOSE YOUR ELIGIBILITY TO COMPETE IN INTERCOLLEGIATE ATHLETICS. PURSUANT TO SOUTH CAROLINA LAW, YOU SHALL NOTIFY THE ATHLETIC DIRECTOR OR PRESIDENT OF YOUR COLLEGE OR UNIVERSITY AND THE ADMINISTRATOR OF THE DEPARTMENT OF CONSUMER AFFAIRS IN WRITING BEFORE PRACTICING FOR OR PARTICIPATING IN AN ATHLETIC EVENT ON BEHALF OF A COLLEGE OR UNIVERSITY OR WITHIN SEVENTY-TWO HOURS AFTER ENTERING INTO THIS CONTRACT, WHICHEVER OCCURS FIRST. FAILURE TO PROVIDE THIS NOTICE IS A CRIMINAL OFFENSE.'
(E) An agent contract entered into between a student athlete and an athlete agent who fails to provide the notification required by this section is void and unenforceable.
(F) A student athlete or athlete agent who enters into an agent contract and fails to provide the notification required by this section is liable for damages to the college or university in which the student athlete is enrolled that result from the student athlete's subsequent ineligibility. In addition to damages, if any, awarded pursuant to this section, damages may be assessed in an amount equal to three times the value of the athletic scholarship furnished by the institution to the student athlete during the student athlete's period of eligibility.
(G) Within ten days after the date on which the contractual relationship between the athlete agent and the student athlete arises or after notification of the contractual relationship is received by the athletic director or president of the college or university in which the student is enrolled and the Administrator of the Department of Consumer Affairs, whichever occurs later, the student athlete has the right to rescind the contract or any contractual relationship with the athlete agent by giving notice in writing of his intent to rescind. The rescission is effective upon repayment by the student athlete to the athlete agent of any monetary amounts paid to the student athlete by the athlete agent, exclusive of travel, lodging, meals, and entertainment, or reimbursement for these items, furnished by the athlete agent to the student athlete. The student athlete may not effect a waiver of his right to rescind, and an attempt to do so is prohibited and unenforceable.
(H) Postdating of agent contracts is prohibited, and a postdated contract is void and unenforceable. Execution of a postdated contract is a violation of this chapter, and an athlete agent committing the violation is subject to the penalty provisions of Section 59-102-20(C). A student athlete committing the violation is subject to the penalty provisions of Section 59-102-30(A).
(A) By acting as an athlete agent in this State, a nonresident person appoints the Secretary of State as his agent for service of process in a civil action in this State related to his acting as an athlete agent in this State.
(B) The Secretary of State may issue subpoenas for material relevant to the administration of this chapter.
Section 59-102-40. An agent may not:
(1) publish or cause to be published false or misleading information or advertisements nor give any false information or make false promises to an athlete concerning employment;
(2) accept as a client a student athlete referred by an employee of or a coach for a college or university located in this State in exchange for the rendition of free legal services, the rendition of legal services for a reduced fee, or any other consideration;
(3) enter into an agreement, written or oral, by which the athlete agent offers anything of value to an employee of or a coach for a college or university located in this State in return for the referral of student athlete clients by that employee or coach;
(4) offer anything of value to induce a student athlete to enter into an agreement by which the agent will represent the student athlete. Negotiations regarding the agent's fee is not considered an inducement;
(5) conduct business as an athlete agent if his registration is suspended.
(A) Except as otherwise provided in subsection (B), a person may not act as an athlete agent in this State without holding a certificate of registration pursuant to Section 59-102-60 or 59-102-80.
(B) Before being issued a certificate of registration, a person may act as an athlete agent in this State for all purposes except signing an agency contract if:
(1) a student athlete or one acting on behalf of the student athlete initiates communication with the person; and
(2) within seven days after an initial act as an athlete agent, the person 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 all consideration received pursuant to the contract.
Section 59-102-50. (A) Department of Consumer Affairs to promulgate regulations. The Department of Consumer Affairs may promulgate regulations necessary to implement and enforce this chapter. An applicant for registration shall submit an application for registration to the Secretary of State in a form prescribed by the Secretary of State. An application filed pursuant to this section is a public record. The application must be in the name of a person and, except as otherwise provided in subsection (B), signed or otherwise authenticated by the applicant under penalty of perjury and state or contain:
(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:
(a) formal training as an athlete agent;
(b) practical experience as an athlete agent; and
(c) educational background relating to his 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) the names and addresses of all persons who are:
(a) with respect to the athlete agent's business, if it is not a corporation, the partners, members, officers, managers, associates, or profit-sharers of the business; and
(b) with respect to a corporation employing the athlete agent, the officers, directors, and any shareholder of the corporation having an interest of five percent or greater;
(8) whether the applicant or a person named pursuant to item (7) has been convicted of a crime that would be a crime involving moral turpitude or a felony if committed in this State, and identification of the crime;
(9) whether there has been any administrative or judicial determination that the applicant or a person named pursuant to item (7) has made a false, misleading, deceptive, or fraudulent representation;
(10) an instance in which the conduct of the applicant or a person named pursuant to item (7) resulted in the imposition against a student athlete or educational institution of a sanction, suspension, or declaration of ineligibility to participate in an interscholastic or intercollegiate athletic event;
(11) a sanction, suspension, or disciplinary action taken against the applicant or a person named pursuant to item (7) arising out of occupational or professional conduct; and
(12) whether there has been a denial of an application for, suspension or revocation of, or refusal to renew the registration or licensure of the applicant or a person named pursuant to item (7) as an athlete agent in any state.
(B) An applicant for registration in this State, who has applied for and holds a certificate, registration, or licensure as an athlete agent in another state, may submit a copy of that application and certificate instead of submitting an application in the form prescribed pursuant to subsection (A). The Secretary of State 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:
(1) 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) contains information substantially similar to or more comprehensive than that required in an application submitted in this State; and
(3) was signed by the applicant under penalty of perjury.
Section 59-102-60. (A) Except as otherwise provided in subsection (B), the Secretary of State shall issue a certificate of registration to a person who complies with Section 59-102-50(A) or whose application has been accepted pursuant to Section 59-102-50(B).
(B) The Secretary of State may refuse to issue a certificate of registration if he determines the applicant has engaged in conduct that has a significantly adverse effect on the applicant's fitness to act as an athlete agent. In making the determination, the Secretary of State may consider whether the applicant has:
(1) been convicted of a crime that would be a crime involving moral turpitude or a felony if committed in this State;
(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 59-102-140;
(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 resulting in the imposition against a student athlete or educational institution of a sanction, suspension, or declaration of ineligibility to participate in an interscholastic or intercollegiate athletic event; or
(7) engaged in conduct that significantly adversely reflects on the applicant's credibility, honesty, or integrity.
(C) In making a determination pursuant to subsection (B), the Secretary of State shall consider:
(1) how recently the conduct occurred;
(2) the nature of the conduct and the context in which it occurred; and
(3) other relevant conduct of the applicant.
(D) An athlete agent may apply to renew a registration by submitting an application for renewal in a form prescribed by the Secretary of State. An application filed pursuant to this section is a public record. The application for renewal must be signed by the applicant under penalty of perjury and must contain current information on all matters required in an original registration.
(E) A person who has submitted an application for renewal of registration or licensure in another state may file a copy of that application for renewal and a valid certificate of registration or licensure from the other state instead of submitting an application for renewal in the form prescribed pursuant to subsection (D). The Secretary of State 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:
(1) 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) contains information substantially similar to or more comprehensive than that required in an application for renewal submitted in this State; and
(3) was signed by the applicant under penalty of perjury.
(F) A certificate of registration or a renewal of a registration is valid for two years.
Section 59-102-70. (A) The Secretary of State may suspend, revoke, or refuse to renew a registration for conduct that would have justified denial of registration pursuant to Section 59-102-60(B).
(B) The Secretary of State 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 Administrative Procedures Act applies to this chapter.
Section 59-102-80. The Secretary of State may issue a temporary certificate of registration while an application for registration or renewal of registration is pending.
Section 59-102-90. An application for registration or renewal of registration must be accompanied by a fee of:
(1) five hundred dollars for an initial application for registration; or
(2) three hundred dollars for an application for renewal of registration.
Section 59-102-100. (A) An agency contract must be in a record that is signed or otherwise authenticated by the parties.
(B) An agency contract must include:
(1) the amount and method of calculating the consideration to be paid by the student athlete for services provided by the athlete agent under the contract and other consideration the athlete agent receives from another source for entering into the contract or for providing the services;
(2) the name of a person not listed in the application for registration or renewal of registration to be compensated because the student athlete signed the agency contract;
(3) a description of expenses the student athlete agrees to reimburse;
(4) a description of the services to be provided to the student athlete;
(5) the duration of the contract; and
(6) the date of execution.
(C) An agency contract must contain, in close proximity to the signature of the student athlete, a conspicuous notice in boldface type in capital letters stating:
(1) YOU MAY LOSE YOUR ELIGIBILITY TO COMPETE AS A STUDENT ATHLETE IN YOUR SPORT;
(2) IF YOU HAVE AN ATHLETIC DIRECTOR, BOTH YOU AND YOUR ATHLETE AGENT MUST NOTIFY YOUR ATHLETIC DIRECTOR WITHIN 72 HOURS AFTER ENTERING INTO THIS CONTRACT; AND
(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 section is voidable by the student athlete. If a student athlete voids an agency contract, the student athlete is not required to pay consideration under the contract or to return consideration received from the athlete agent to induce the student 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 athlete at the time of execution.
Section 59-102-110. (A) Within seventy-two 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 seventy-two 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.
Section 59-102-120. (A) A student athlete may cancel an agency contract by giving notice of the cancellation to the athlete agent in a record within fourteen 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 consideration under the contract or to return consideration received from the athlete agent to induce the student athlete to enter into the contract.
Section 59-102-130. (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) an agency contract entered into by the athlete agent; and
(3) direct costs incurred by the athlete agent in the recruitment or solicitation of a student athlete to enter into an agency contract.
(B) Records retained pursuant to subsection (A) are open to inspection by the Secretary of State during normal business hours.
Section 59-102-140. (A) An athlete agent, with the intent to induce a student athlete to enter into an agency contract, may not:
(1) give materially false or misleading information or make a materially false promise or representation;
(2) furnish anything of value to a student athlete before the student athlete enters into the agency contract; or
(3) furnish anything of value to an individual other than the student athlete or another registered athlete agent.
(B) An athlete agent may not intentionally:
(1) initiate contact with a student athlete unless registered pursuant to this chapter;
(2) refuse or fail to retain or permit inspection of records pursuant to Section 59-102-130;
(3) fail to register as required by Section 59-102-40;
(4) provide materially false or misleading information in an application for registration or renewal of registration;
(5) predate or postdate an agency contract; or
(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.
Section 59-102-150. An athlete agent who violates Section 59-102-140 is guilty of a misdemeanor and, upon conviction, may be fined not more than ten thousand dollars or imprisoned for not more than three years, or both.
Section 59-102-160. (A) An educational institution has a right of action against an athlete agent or a former student athlete for damages caused by a violation of this chapter. In an action pursuant to this section, the court may award costs and reasonable attorney's fees to the prevailing party.
(B) Damages to an educational institution pursuant to subsection (A) include, without limitation, losses and expenses incurred because the 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 by reasonable self-imposed disciplinary action taken to mitigate sanctions likely to be imposed by such an organization.
(C) A right of action pursuant to this section does not accrue until the educational institution discovers, or by the exercise of reasonable diligence would have discovered, the violation by the athlete agent or former student athlete.
(D) Liability of the athlete agent or the former student athlete pursuant to this section is several and not joint.
(E) This chapter does not restrict rights, remedies, or defenses of a person under law or equity.
Section 59-102-170. Upon a finding that an athlete agent has violated a provision of this chapter, as determined from admissions of the athlete agent freely and voluntarily made or as the result of a hearing conducted pursuant to the Administrative Procedures Act, the Secretary of State may assess a fine against an athlete agent not to exceed one hundred thousand dollars for a violation of this chapter.
Section 59-102-180. In applying and construing this uniform act, consideration must be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it."
SECTION 2. The repeal or amendment by this act of any law, whether temporary or permanent or civil or criminal, does not affect pending actions, rights, duties, or liabilities founded thereon, or alter, discharge, release or extinguish any penalty, forfeiture, or liability incurred under the repealed or amended law, unless the repealed or amended provision shall so expressly provide. After the effective date of this act, all laws repealed or amended by this act must be taken and treated as remaining in full force and effect for the purpose of sustaining any pending or vested right, civil action, special proceeding, criminal prosecution, or appeal existing as of the effective date of this act, and for the enforcement of rights, duties, penalties, forfeitures, and liabilities as they stood under the repealed or amended laws.
SECTION 3. If a provision of this chapter or its application to a person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this chapter which may be given effect without the invalid provision or application, and to this end the provisions of this chapter are severable.
SECTION 4. This act takes effect upon approval by the Governor. /
Renumber sections to conform.
Amend title to conform.
RONALD P. TOWNSEND for Committee.
TO AMEND CHAPTER 102 OF TITLE 59, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ATHLETE AGENTS AND STUDENT ATHLETES, SO AS TO ENACT THE "UNIFORM ATHLETE AGENTS ACT OF 2004", AND TO PROVIDE FOR: DEFINITIONS, APPLICATIONS, REGISTRATION, AND RENEWAL OF REGISTRATION FOR ATHLETE AGENTS, SERVICE OF PROCESS UPON INDIVIDUALS ACTING AS ATHLETE AGENTS IN THIS STATE, DUTIES OF THE SECRETARY OF STATE RELATING TO APPLICATIONS FOR REGISTRATION AND ISSUANCE OF TEMPORARY CERTIFICATES AND CERTIFICATES OF REGISTRATION TO ATHLETE AGENTS, THE NON-RENEWAL, SUSPENSION, AND REVOCATION OF CERTIFICATES OF REGISTRATION AFTER NOTICE AND OPPORTUNITY FOR A HEARING, REQUIRED PROVISIONS OF AN AGENCY CONTRACT INCLUDING A WARNING TO STUDENT ATHLETES OF CERTAIN RIGHTS AND CONSEQUENCES OF SIGNING AN AGENCY CONTRACT, CANCELLATION OF AN AGENCY CONTRACT, RETENTION OF CERTAIN RECORDS FOR FIVE YEARS BY AN ATHLETE AGENT AND INSPECTION OF THOSE RECORDS, PROHIBITION OF CERTAIN REPRESENTATIONS BY AN ATHLETE AGENT OR THE FURNISHING OF ANYTHING OF VALUE TO A STUDENT ATHLETE WITH THE INTENT TO INDUCE A STUDENT ATHLETE TO ENTER INTO AN AGENCY CONTRACT, A RIGHT OF ACTION BY AN EDUCATIONAL INSTITUTION AGAINST AN ATHLETE AGENT OR FORMER STUDENT ATHLETE FOR DAMAGES CAUSED BY A VIOLATION OF THIS CHAPTER, AND CIVIL AND CRIMINAL PENALTIES FOR CERTAIN VIOLATIONS OF THIS CHAPTER.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Chapter 102, Title 59 of the 1976 Code, as added by Act 456 of 1990, is amended to read:
Section 59-102-10. As used in this chapter:
(1) 'Agent contract' means a contract or agreement pursuant to which a student athlete authorizes an athlete agent to represent him in the marketing of his athletic ability or reputation in a sport.
(2) 'Athlete agent' means a person who, directly or indirectly, recruits or solicits a student athlete to enter into an agent contract, or who for a fee procures, offers, promises, or attempts to obtain employment for a student athlete with a professional sports team or as a professional athlete.
(3) 'Student athlete' means an athlete who practices for or otherwise participates in intercollegiate athletics at a college or university that is located in this State. This chapter may be cited as the 'Uniform Athlete Agents Act of 2004'.
Section 59-102-20. (A) Each athlete agent shall register biennially with the Department of Consumer Affairs on forms to be provided by the department and, at the same time, pay to the department a registration fee of three hundred dollars, for which the department shall issue a certificate of authority entitling the holder to operate as an athlete agent for two years. The department may revoke or suspend the registration of an athlete agent for cause or for a violation of any provision of this chapter.
(B) When the business address of an athlete agent operating in this State is changed, the agent shall notify the department within thirty days after the change of address.
(C) It is unlawful for a person to operate as an athlete agent unless he is registered as provided in this section. A person who violates this section is guilty of a felony and, upon conviction, must be punished by a fine of five thousand dollars or by imprisonment for five years, or both. In this chapter:
(1) 'Agency contract' means an agreement in which a student athlete authorizes a person to negotiate or solicit on behalf of the student athlete a professional sports services contract or an endorsement contract.
(2) '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, sibling, grandparent, or guardian of the student athlete or an individual acting solely on behalf of a professional sports team or professional sports organization.
(3) '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.
(4) 'Contact' means a communication, direct or indirect, between an athlete agent and a student athlete to recruit or solicit the student athlete to enter into an agency contract.
(5) 'Endorsement contract' means an agreement under which a student athlete is employed or receives consideration to use a product or service based on value the student athlete has because of publicity, reputation, following, or fame obtained from athletic ability or performance.
(6) '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.
(7) 'Person' means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, public corporation, other legal or commercial entity, or government, governmental subdivision, agency, or instrumentality.
(8) '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.
(9) '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.
(10) 'Registration' means registration as an athlete agent pursuant to this chapter.
(11) 'State' means the State of South Carolina when referring to this State or 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 when referring to another state.
(12) 'Student athlete' means an individual who engages in, is eligible to engage in, or may be eligible in the future to engage in an 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.
Section 59-102-30. (A) A student athlete who is subject to the rules and regulations of the National Collegiate Athletic Association, the National Association for Intercollegiate Athletics, or the National Junior College Athletic Association, who has not completed his last intercollegiate contest including postseason games for the applicable sport, and who enters into an agent contract with an athlete agent or a contract pursuant to which an athlete is employed as a professional athlete, shall notify the athletic director or the president of the college or university in which he is enrolled and the Administrator of the Department of Consumer Affairs that he has entered into such a contract. Written notification of entering into a contract must be given before practicing for or participating in an athletic event on behalf of a college or university or within seventy-two hours after entering into the contract, whichever occurs first. A student athlete who fails to provide this notification is guilty of a misdemeanor and, upon conviction, must be punished by a fine of one thousand dollars or by imprisonment for one year, or both.
(B) An athlete agent who enters into an agent contract with a student athlete who is subject to the rules and regulations of the National Collegiate Athletic Association, the National Association for Intercollegiate Athletics, or the National Junior College Athletic Association shall notify the athletic director or the president of the college or university in which the student athlete is enrolled and the Administrator of the Department of Consumer Affairs that the student athlete has entered into such a contract. Written notification of the contract must be given before the student athlete's practicing for or participating in an athletic event on behalf of a college or university or within seventy-two hours after entering into the contract, whichever occurs first. An athlete agent who fails to provide this notification is guilty of a felony and, upon conviction, must be punished by a fine of five thousand dollars or by imprisonment for five years, or both.
(C) A student athlete or athlete agent who enters into a contract before October 1, 1990, is subject to the notification requirements of this section as of October 1, 1990. Thereafter, they are subject to these notification requirements immediately in the manner required by this section.
(D) An agent contract between a student athlete and an athlete agent must have a notice printed near the space for the student athlete's signature which must contain the following statement in ten-point bold-faced type:
'WARNING: IF YOU AS A STUDENT ATHLETE SIGN THIS CONTRACT, YOU MAY LOSE YOUR ELIGIBILITY TO COMPETE IN INTERCOLLEGIATE ATHLETICS. PURSUANT TO SOUTH CAROLINA LAW, YOU SHALL NOTIFY THE ATHLETIC DIRECTOR OR PRESIDENT OF YOUR COLLEGE OR UNIVERSITY AND THE ADMINISTRATOR OF THE DEPARTMENT OF CONSUMER AFFAIRS IN WRITING BEFORE PRACTICING FOR OR PARTICIPATING IN AN ATHLETIC EVENT ON BEHALF OF A COLLEGE OR UNIVERSITY OR WITHIN SEVENTY-TWO HOURS AFTER ENTERING INTO THIS CONTRACT, WHICHEVER OCCURS FIRST. FAILURE TO PROVIDE THIS NOTICE IS A CRIMINAL OFFENSE.'
(E) An agent contract entered into between a student athlete and an athlete agent who fails to provide the notification required by this section is void and unenforceable.
(F) A student athlete or athlete agent who enters into an agent contract and fails to provide the notification required by this section is liable for damages to the college or university in which the student athlete is enrolled that result from the student athlete's subsequent ineligibility. In addition to damages, if any, awarded pursuant to this section, damages may be assessed in an amount equal to three times the value of the athletic scholarship furnished by the institution to the student athlete during the student athlete's period of eligibility.
(G) Within ten days after the date on which the contractual relationship between the athlete agent and the student athlete arises or after notification of the contractual relationship is received by the athletic director or president of the college or university in which the student is enrolled and the Administrator of the Department of Consumer Affairs, whichever occurs later, the student athlete has the right to rescind the contract or any contractual relationship with the athlete agent by giving notice in writing of his intent to rescind. The rescission is effective upon repayment by the student athlete to the athlete agent of any monetary amounts paid to the student athlete by the athlete agent, exclusive of travel, lodging, meals, and entertainment, or reimbursement for these items, furnished by the athlete agent to the student athlete. The student athlete may not effect a waiver of his right to rescind, and an attempt to do so is prohibited and unenforceable.
(H) Postdating of agent contracts is prohibited, and a postdated contract is void and unenforceable. Execution of a postdated contract is a violation of this chapter, and an athlete agent committing the violation is subject to the penalty provisions of Section 59-102-20(C). A student athlete committing the violation is subject to the penalty provisions of Section 59-102-30(A).
(A) By acting as an athlete agent in this State, a nonresident person appoints the Director of the Department of Consumer Affairs as his agent for service of process in a civil action in this State related to his acting as an athlete agent in this State.
(B) The Department of Consumer Affairs may issue subpoenas for material relevant to the administration of this chapter.
Section 59-102-40. An agent may not:
(1) publish or cause to be published false or misleading information or advertisements nor give any false information or make false promises to an athlete concerning employment;
(2) accept as a client a student athlete referred by an employee of or a coach for a college or university located in this State in exchange for the rendition of free legal services, the rendition of legal services for a reduced fee, or any other consideration;
(3) enter into an agreement, written or oral, by which the athlete agent offers anything of value to an employee of or a coach for a college or university located in this State in return for the referral of student athlete clients by that employee or coach;
(4) offer anything of value to induce a student athlete to enter into an agreement by which the agent will represent the student athlete. Negotiations regarding the agent's fee is not considered an inducement;
(5) conduct business as an athlete agent if his registration is suspended.
(A) Except as otherwise provided in subsection (B), a person may not act as an athlete agent in this State without holding a certificate of registration pursuant to Section 59-102-60 or 59-102-80.
(B) Before being issued a certificate of registration, a person may act as an athlete agent in this State for all purposes except signing an agency contract if:
(1) a student athlete or one acting on behalf of the student athlete initiates communication with the person; and
(2) within seven days after an initial act as an athlete agent, the person 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 all consideration received pursuant to the contract.
Section 59-102-50. Department of Consumer Affairs to promulgate regulations. The Department of Consumer Affairs may promulgate regulations necessary to implement and enforce this chapter. (A) An applicant for registration shall submit an application for registration to the Department of Consumer Affairs in a form prescribed by the Department of Consumer Affairs. An application filed pursuant to this section is a public record. The application must be in the name of a person and, except as otherwise provided in subsection (B), signed or otherwise authenticated by the applicant under penalty of perjury and state or contain:
(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:
(a) formal training as an athlete agent;
(b) practical experience as an athlete agent; and
(c) educational background relating to his 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) the names and addresses of all persons who are:
(a) with respect to the athlete agent's business, if it is not a corporation, the partners, members, officers, managers, associates, or profit-sharers of the business; and
(b) with respect to a corporation employing the athlete agent, the officers, directors, and any shareholder of the corporation having an interest of five percent or greater;
(8) whether the applicant or a person named pursuant to item (7) has been convicted of a crime that would be a crime involving moral turpitude or a felony if committed in this State, and identification of the crime;
(9) whether there has been any administrative or judicial determination that the applicant or a person named pursuant to item (7) has made a false, misleading, deceptive, or fraudulent representation;
(10) an instance in which the conduct of the applicant or a person named pursuant to item (7) resulted in the imposition against a student athlete or educational institution of a sanction, suspension, or declaration of ineligibility to participate in an interscholastic or intercollegiate athletic event;
(11) a sanction, suspension, or disciplinary action taken against the applicant or a person named pursuant to item (7) arising out of occupational or professional conduct; and
(12) whether there has been a denial of an application for, suspension or revocation of, or refusal to renew the registration or licensure of the applicant or a person named pursuant to item (7) as an athlete agent in any state.
(B) An applicant for registration in this State, who has applied for and holds a certificate, registration, or licensure as an athlete agent in another state, may submit a copy of that application and certificate instead of submitting an application in the form prescribed pursuant to subsection (A). The Department of Consumer Affairs 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:
(1) 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) contains information substantially similar to or more comprehensive than that required in an application submitted in this State; and
(3) was signed by the applicant under penalty of perjury.
Section 59-102-60. (A) Except as otherwise provided in subsection (B), the Department of Consumer Affairs shall issue a certificate of registration to a person who complies with Section 59-102-50(A) or whose application has been accepted pursuant to Section 59-102-50(B).
(B) The Department of Consumer Affairs may refuse to issue a certificate of registration if he determines the applicant has engaged in conduct that has a significantly adverse effect on the applicant's fitness to act as an athlete agent. In making the determination, the Department of Consumer Affairs may consider whether the applicant has:
(1) been convicted of a crime that would be a crime involving moral turpitude or a felony if committed in this State;
(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 59-102-140;
(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 resulting in the imposition against a student athlete or educational institution of a sanction, suspension, or declaration of ineligibility to participate in an interscholastic or intercollegiate athletic event ; or
(7) engaged in conduct that significantly adversely reflects on the applicant's credibility, honesty, or integrity.
(C) In making a determination pursuant to subsection (B), the Department of Consumer Affairs shall consider:
(1) how recently the conduct occurred;
(2) the nature of the conduct and the context in which it occurred; and
(3) other relevant conduct of the applicant.
(D) An athlete agent may apply to renew a registration by submitting an application for renewal in a form prescribed by the Department of Consumer Affairs. An application filed pursuant to this section is a public record. The application for renewal must be signed by the applicant under penalty of perjury and must contain current information on all matters required in an original registration.
(E) A person who has submitted an application for renewal of registration or licensure in another state may file a copy of that application for renewal and a valid certificate of registration or licensure from the other state instead of submitting an application for renewal in the form prescribed pursuant to subsection (D). The Department of Consumer Affairs 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:
(1) 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) contains information substantially similar to or more comprehensive than that required in an application for renewal submitted in this State; and
(3) was signed by the applicant under penalty of perjury.
(F) A certificate of registration or a renewal of a registration is valid for two years.
Section 59-102-70. (A) The Department of Consumer Affairs may suspend, revoke, or refuse to renew a registration for conduct that would have justified denial of registration pursuant to Section 59-102-60(B).
(B) The Department of Consumer Affairs 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 Administrative Procedures Act applies to this chapter.
Section 59-102-80. The Department of Consumer Affairs may issue a temporary certificate of registration while an application for registration or renewal of registration is pending.
Section 59-102-90. An application for registration or renewal of registration must be accompanied by a fee of:
(1) five hundred dollars for an initial application for registration; or
(2) three hundred dollars for an application for renewal of registration.
Section 59-102-100. (A) An agency contract must be in a record that is signed or otherwise authenticated by the parties.
(B) An agency contract must include:
(1) the amount and method of calculating the consideration to be paid by the student athlete for services provided by the athlete agent under the contract and other consideration the athlete agent receives from another source for entering into the contract or for providing the services;
(2) the name of a person not listed in the application for registration or renewal of registration to be compensated because the student athlete signed the agency contract;
(3) a description of expenses the student athlete agrees to reimburse;
(4) a description of the services to be provided to the student athlete;
(5) the duration of the contract; and
(6) the date of execution.
(C) An agency contract must contain, in close proximity to the signature of the student athlete, a conspicuous notice in boldface type in capital letters stating:
(1) YOU MAY LOSE YOUR ELIGIBILITY TO COMPETE AS A STUDENT ATHLETE IN YOUR SPORT;
(2) IF YOU HAVE AN ATHLETIC DIRECTOR, BOTH YOU AND YOUR ATHLETE AGENT MUST NOTIFY YOUR ATHLETIC DIRECTOR WITHIN 72 HOURS AFTER ENTERING INTO THIS CONTRACT; AND
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 section is voidable by the student athlete. If a student athlete voids an agency contract, the student athlete is not required to pay consideration under the contract or to return consideration received from the athlete agent to induce the student 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 athlete at the time of execution.
Section 59-102-110. (A) Within seventy-two 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 seventy-two 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.
Section 59-102-120. (A) A student athlete may cancel an agency contract by giving notice of the cancellation to the athlete agent in a record within fourteen 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 consideration under the contract or to return consideration received from the athlete agent to induce the student athlete to enter into the contract.
Section 59-102-130. (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) an agency contract entered into by the athlete agent; and
(3) direct costs incurred by the athlete agent in the recruitment or solicitation of a student athlete to enter into an agency contract.
(B) Records retained pursuant to subsection (A) are open to inspection by the Department of Consumer Affairs during normal business hours.
Section 59-102-140. (A) An athlete agent, with the intent to induce a student athlete to enter into an agency contract, may not:
(1) give materially false or misleading information or make a materially false promise or representation;
(2) furnish anything of value to a student athlete before the student athlete enters into the agency contract; or
(3) furnish anything of value to an individual other than the student athlete or another registered athlete agent.
(B) An athlete agent may not intentionally:
(1) initiate contact with a student athlete unless registered pursuant to this chapter;
(2) refuse or fail to retain or permit inspection of records pursuant to Section 59-102-130;
(3) fail to register as required by Section 59-102-40;
(4) provide materially false or misleading information in an application for registration or renewal of registration;
(5) predate or postdate an agency contract; or
(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.
Section 59-102-150. An athlete agent who violates Section 59-102-140 is guilty of a misdemeanor and, upon conviction, may be fined not more than ten thousand dollars or imprisoned for not more than three years, or both.
Section 59-102-160. (A) An educational institution has a right of action against an athlete agent or a former student athlete for damages caused by a violation of this chapter. In an action pursuant to this section, the court may award costs and reasonable attorney's fees to the prevailing party.
(B) Damages to an educational institution pursuant to subsection (A) include, without limitation, losses and expenses incurred because the 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 by reasonable self-imposed disciplinary action taken to mitigate sanctions likely to be imposed by such an organization.
(C) A right of action pursuant to this section does not accrue until the educational institution discovers, or by the exercise of reasonable diligence would have discovered, the violation by the athlete agent or former student athlete.
(D) Liability of the athlete agent or the former student athlete pursuant to this section is several and not joint.
(E) This chapter does not restrict rights, remedies, or defenses of a person under law or equity.
Section 59-102-170. Upon a finding that an athlete agent has violated a provision of this chapter, as determined from admissions of the athlete agent freely and voluntarily made or as the result of a hearing conducted pursuant to the Administrative Procedures Act, the Department of Consumer Affairs may assess a fine against an athlete agent not to exceed one hundred thousand dollars for a violation of this chapter.
Section 59-102-180. In applying and construing this uniform act, consideration must be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it."
SECTION 2. The repeal or amendment by this act of any law, whether temporary or permanent or civil or criminal, does not affect pending actions, rights, duties, or liabilities founded thereon, or alter, discharge, release or extinguish any penalty, forfeiture, or liability incurred under the repealed or amended law, unless the repealed or amended provision shall so expressly provide. After the effective date of this act, all laws repealed or amended by this act must be taken and treated as remaining in full force and effect for the purpose of sustaining any pending or vested right, civil action, special proceeding, criminal prosecution, or appeal existing as of the effective date of this act, and for the enforcement of rights, duties, penalties, forfeitures, and liabilities as they stood under the repealed or amended laws.
SECTION 3. If a provision of this chapter or its application to a person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this chapter which may be given effect without the invalid provision or application, and to this end the provisions of this chapter are severable.
SECTION 4. This act takes effect upon approval by the Governor.
This web page was last updated on Thursday, June 25, 2009 at 10:19 A.M.