108TH CONGRESS REPORT 108–24 " HOUSE OF REPRESENTATIVES ! 1st Session Part 2

SPORTS AGENT RESPONSIBILITY AND TRUST ACT

JUNE 2, 2003.—Ordered to be printed 

Mr. SENSENBRENNER, from the Committee on the Judiciary, 

submitted the following 

R E P O R T 

[To accompany H.R. 361] 

[Including cost estimate of the Congressional Budget Office]

The Committee on the Judiciary, to whom was referred the bill 

(H.R. 361) to designate certain conduct by sports agents relating to 

the signing of contracts with student athletes as unfair and deceptive acts or practices to be regulated by the Federal Trade Commission, having considered the same, reports favorably thereon with 

an amendment and recommends that the bill as amended do pass.

CONTENTS 

Page 

The Amendment ...................................................................................................... 1

Purpose and Summary ............................................................................................ 4

Background and Need for the Legislation ............................................................. 4

Hearings ................................................................................................................... 5

Committee Consideration ........................................................................................ 5

Vote of the Committee ............................................................................................. 6

Committee Oversight Findings ............................................................................... 6

New Budget Authority and Tax Expenditures ...................................................... 6

Congressional Budget Office Cost Estimate .......................................................... 6

Performance Goals and Objectives ......................................................................... 8

Constitutional Authority Statement ...................................................................... 8

Section-by-Section Analysis and Discussion .......................................................... 8

Changes in Existing Law Made by the Bill, as Reported ..................................... 9

Markup Transcript .................................................................................................. 9

The amendment is as follows: 

Strike all after the enacting clause and insert the following:

SECTION 1. SHORT TITLE. 

This Act may be cited as the ‘‘Sports Agent Responsibility and Trust Act’’. 

SEC. 2. DEFINITIONS. 

As used in this Act, the following definitions apply: 

2

(1) AGENCY CONTRACT.—The term ‘‘agency contract’’ means an oral or written agreement in which a student athlete authorizes a person to negotiate or 

solicit on behalf of the student athlete a professional sports contract or an endorsement contract. 

(2) ATHLETE AGENT.—The term ‘‘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, and does 

not include a spouse, parent, sibling, grandparent, or guardian of such student 

athlete, any legal counsel for purposes other than that of representative agency, 

or an individual acting solely on behalf of a professional sports team or professional sports organization. 

(3) ATHLETIC DIRECTOR.—The term ‘‘athletic director’’ means an individual 

responsible for administering the athletic program of an educational institution 

or, in the case that such program is administered separately, the athletic program for male students or the athletic program for female students, as appropriate. 

(4) COMMISSION.—The term ‘‘Commission’’ means the Federal Trade Commission. 

(5) ENDORSEMENT CONTRACT.—The term ‘‘endorsement contract’’ means an agreement under which a student athlete is employed or receives consideration 

for the use by the other party of that individual’s person, name, image, or likeness in the promotion of any product, service, or event. 

(6) INTERCOLLEGIATE SPORT.—The term ‘‘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 college athletics. 

(7) PROFESSIONAL SPORTS CONTRACT.—The term ‘‘professional sports 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. 

(8) STATE.—The term ‘‘State’’ includes 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. 

(9) STUDENT ATHLETE.—The term ‘‘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. An individual who is permanently ineligible 

to participate in a particular intercollegiate sport is not a student athlete for 

purposes of that sport. 

SEC. 3. REGULATION OF UNFAIR AND DECEPTIVE ACTS AND PRACTICES IN CONNECTION 

WITH THE CONTACT BETWEEN AN ATHLETE AGENT AND A STUDENT ATHLETE. 

(a) CONDUCT PROHIBITED.—It is unlawful for an athlete agent to— (1) directly or indirectly recruit or solicit a student athlete to enter into an 

agency contract, by— (A) giving any false or misleading information or making a false promise or representation; or 

(B) providing anything of value to a student athlete or anyone associated with the student athlete before the student athlete enters into an 

agency contract, including any consideration in the form of a loan, or acting 

in the capacity of a guarantor or co-guarantor for any debt; 

(2) enter into an agency contract with a student athlete without providing 

the student athlete with the disclosure document described in subsection (b); or 

(3) predate or postdate an agency contract. 

(b) REQUIRED DISCLOSURE BY ATHLETE AGENTS TO STUDENT ATHLETES.— (1) IN GENERAL.—In conjunction with the entering into of an agency contract, an athlete agent shall provide to the student athlete, or, if the student 

athlete is under the age of 18, to such student athlete’s parent or legal guardian, a disclosure document that meets the requirements of this subsection. Such 

disclosure document is separate from and in addition to any disclosure which 

may be required under State law. 

(2) SIGNATURE OF STUDENT ATHLETE.—The disclosure document must be 

signed by the student athlete, or, if the student athlete is under the age of 18, 

by such student athlete’s parent or legal guardian, prior to entering into the 

agency contract. 

(3) REQUIRED LANGUAGE.—The disclosure document must contain, in close 

proximity to the signature of the student athlete, or, if the student athlete is 

under the age of 18, the signature of such student athlete’s parent or legal 

guardian, a conspicuous notice in boldface type stating: ‘‘Warning to Student 

Athlete: If you agree orally or in writing to be represented by an agent now or 

in the future you may lose your eligibility to compete as a student athlete in 

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your sport. Within 72 hours after entering into this contract or before the next 

athletic event in which you are eligible to participate, whichever occurs first, 

both you and the agent by whom you are agreeing to be represented must notify 

the athletic director of the educational institution at which you are enrolled, or 

other individual responsible for athletic programs at such educational institution, that you have entered into an agency contract.’’. 

SEC. 4. ENFORCEMENT. 

(a) UNFAIR OR DECEPTIVE ACT OR PRACTICE.—A violation of this Act shall be 

treated as a violation of a rule defining an unfair or deceptive act or practice prescribed under section 18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 

57a(a)(1)(B)). 

(b) ACTIONS BY THE COMMISSION.—The Commission shall enforce this Act in the 

same manner, by the same means, and with the same jurisdiction, powers, and duties as though all applicable terms and provisions of the Federal Trade Commission 

Act (15 U.S.C. 41 et seq.) were incorporated into and made a part of this Act. 

SEC. 5. ACTIONS BY STATES. 

(a) IN GENERAL.—

(1) CIVIL ACTIONS.—In any case in which the attorney general of a State 

has reason to believe that an interest of the residents of that State has been 

or is threatened or adversely affected by the engagement of any athlete agent 

in a practice that violates section 3 of this Act, the State may bring a civil action on behalf of the residents of the State in a district court of the United 

States of appropriate jurisdiction to—

(A) enjoin that practice; 

(B) enforce compliance with this Act; or 

(C) obtain damage, restitution, or other compensation on behalf of residents of the State. 

(2) NOTICE.—

(A) IN GENERAL.—Before filing an action under paragraph (1), the attorney general of the State involved shall provide to the Commission—

(i) written notice of that action; and 

(ii) a copy of the complaint for that action. 

(B) EXEMPTION.—Subparagraph (A) shall not apply with respect to the 

filing of an action by an attorney general of a State under this subsection, 

if the attorney general determines that it is not feasible to provide the notice described in that subparagraph before filing of the action. In such case, 

the attorney general of a State shall provide notice and a copy of the complaint to the Commission at the same time as the attorney general files the 

action. 

(b) INTERVENTION.—

(1) IN GENERAL.—On receiving notice under subsection (a)(2), the Commission shall have the right to intervene in the action that is the subject of the 

notice. 

(2) EFFECT OF INTERVENTION.—If the Commission intervenes in an action 

under subsection (a), it shall have the right—

(A) to be heard with respect to any matter that arises in that action; 

and 

(B) to file a petition for appeal. 

(c) CONSTRUCTION.—For purposes of bringing any civil action under subsection 

(a), nothing in this title shall be construed to prevent an attorney general of a State 

from exercising the powers conferred on the attorney general by the laws of that 

State to—

(1) conduct investigations; 

(2) administer oaths or affirmations; or 

(3) compel the attendance of witnesses or the production of documentary 

and other evidence. 

(d) ACTIONS BY THE COMMISSION.—In any case in which an action is instituted 

by or on behalf of the Commission for a violation of section 3, no State may, during 

the pendency of that action, institute an action under subsection (a) against any defendant named in the complaint in that action. 

(e) VENUE.—Any action brought under subsection (a) may be brought in the district court of the United States that meets applicable requirements relating to venue 

under section 1391 of title 28, United States Code. 

(f) SERVICE OF PROCESS.—In an action brought under subsection (a), process 

may be served in any district in which the defendant—

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(1) is an inhabitant; or 

(2) may be found. 

SEC. 6. PROTECTION OF EDUCATIONAL INSTITUTION. 

(a) NOTICE REQUIRED.—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 athlete agent and the student athlete shall each inform 

the athletic director of the educational institution at which the student athlete is 

enrolled, or other individual responsible for athletic programs at such educational 

institution, that the student athlete has entered into an agency contract, and the 

athlete agent shall provide the athletic director with notice in writing of such a contract. 

(b) CIVIL REMEDY.—

(1) IN GENERAL.—An educational institution has a right of action against 

an athlete agent for damages caused by a violation of this Act. 

(2) DAMAGES.—Damages of an educational institution may include and are 

limited to actual losses and expenses incurred because, as a result of the conduct of the athlete agent, the educational institution was injured by a violation 

of this Act 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 actions likely to be imposed by such an association or conference. 

(3) COSTS AND ATTORNEYS FEES.—In an action taken under this section, the 

court may award to the prevailing party costs and reasonable attorneys fees. 

(4) EFFECT ON OTHER RIGHTS, REMEDIES AND DEFENSES.—This section does 

not restrict the rights, remedies, or defenses of any person under law or equity. 

SEC. 7. LIMITATION. 

Nothing in this Act shall be construed to prohibit an individual from seeking 

any remedies available under existing Federal or State law or equity. 

SEC. 8. SENSE OF CONGRESS. 

It is the sense of Congress that States should enact the Uniform Athlete Agents 

Act of 2000 drafted by the National Conference of Commissioners on Uniform State 

Laws, to protect student athletes and the integrity of amateur sports from unscrupulous sports agents. In particular, it is the sense of Congress that States should 

enact the provisions relating to the registration of sports agents, the required form 

of contract, the right of the student athlete to cancel an agency contract, the disclosure requirements relating to record maintenance, reporting, renewal, notice, warning, and security, and the provisions for reciprocity among the States.

PURPOSE AND SUMMARY

The purpose of H.R. 361, the ‘‘Sports Agent Responsibility and 

Trust Act,’’ is to designate certain conduct by sports agents relating 

to the signing of contracts with student athletes as unfair and deceptive acts or practices to be regulated by the Federal Trade Commission (FTC). It provides for a cause of action for economic damages to be sought by either the FTC, the attorney general for the 

State of occurrence, or the educational institution harmed. 

BACKGROUND AND NEED FOR THE LEGISLATION

The multi-million dollar value of professional athlete salaries, 

signing bonuses, and endorsement contracts has produced a proliferation of questionable ethical practices by some sports agents. 

Unscrupulous agents, or their representatives, are willing to break 

the rules in order to sign promising student athletes to a representational contract because the fees that accompany the representation of a professional athlete are considerable, and the agent will 

risk little in comparison to the athlete or school. 

Motivated largely by financial gain, unscrupulous agents have 

gone to extreme measures with promising student athletes with 

even a remote chance of becoming a professional athlete. However, 

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1 NCAA Online, Estimated Probability of Competing in Athletics Beyond the High School Interscholastic Level (Visited May 13, 2003) <http://www.ncaa.org/research/prob—of—competing/>. 2 Id., NCAA Regulations Related to Agents and Other Amateurism Provisions, Sub II (Visited 

May 13, 2003) <http://www1.ncaa.org/membership/enforcement/agents/agentPacket#Bylaws>. 

whether a college athlete will succeed professionally is highly speculative. It has been estimated that an National Collegiate Athletic 

Association (NCAA) athlete has little more than a 1-percent chance 

of making a professional team, even in a backup role.1 These 

agents, or their associates—often known as ‘‘runners’’—will use tactics including secret payments to the athlete, undisclosed payments 

to the family or friends of the athlete who may be in a position to 

influence him or her, unrealistic promises, and even pressuring the 

athlete through intimidation and threats. In some cases, these 

agents have made secret payments to student athletes or their families, and then blackmailed them into signing a contract with the 

threat that they would disclose the violation of collegiate rules thus 

jeopardizing the student’s competitive eligibility. These acts go 

unpunished due to disparate, ineffective, or in some cases, a complete absence of State laws. 

A student athlete entering into an oral or written agency contract generally forfeits collegiate eligibility.2 In addition, the college 

or university may be subject to various sanctions for violation of 

competition rules if contests were played with ineligible athletes. If 

this occurs, the economic impact to the school and the athlete can 

be substantial. Not only can a student athlete lose a scholarship, 

the university can be sanctioned with monetary penalties, loss of 

scholarships, forfeiture of contests, and loss of television revenue. 

Currently, there is no Federal law that directly addresses the actions of these agents, although a majority of the States do regulate—in varying degrees—athlete agents and their conduct. Most 

recently, the National Conference of Commissioners on Uniform 

State Laws passed the Uniform Athlete’s Agent Act (UAAA) in 

2000 addressing the conduct, practices, and registration of athlete 

agents. H.R. 361 will provide remedies to protect student athletes 

and the educational institutions, particularly in those States with 

no existing law addressing athlete agent conduct. 

HEARINGS

On May 15, 2003, the Subcommittee on Commercial and Administrative Law held a hearing on H.R. 361, at which Congressman 

Bart Gordon, Congressman Tom Osborne, and sports agent Scott 

Boras testified. In addition, written testimony was provided by the 

National Collegiate Athletic Association. 

COMMITTEE CONSIDERATION

On May 15, 2003, the Subcommittee on Commercial and Administrative Law marked up the bill and ordered it favorably reported 

with an amendment to the full Committee. The amendment, offered by Chairman Cannon, made clarifying revisions to the bill. 

This amendment, which was adopted by voice vote, does the following: (1) clarifies the right of an individual student athlete to 

have available legal counsel outside of the realm of representative 

agency; (2) gives additional emphasis to the provision on the use 

of loans or co-signing of debts for the student athlete or those assoVerDate Jan 31 2003 01:51 Jun 04, 2003 Jkt 019006 PO 00000 Frm 00005 Fmt 6659 Sfmt 6601 E:\HR\OC\HR024P2.XXX HR024P2
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ciated with him in anticipation of future agency representation of 

that athlete; (3) strikes overly broad language relating to court 

remedies; and (4) specifies that the bill does not prohibit an individual from seeking any remedies available to them under existing 

State law or equity. Mr. Cannon’s amendment was adopted by 

voice vote. 

On May 21, 2003, the Committee met in open session and ordered favorably reported the bill H.R. 361, with amendment, by 

voice vote, a quorum being present. At the full Committee markup, 

Mr. Watt offered an amendment that clarified that nothing in the 

bill prohibits an individual from seeking any remedy under Federal 

law. Mr. Watt’s amendment was adopted by voice vote. 

VOTE OF THE COMMITTEE

In compliance with clause 3(b) of the rule XIII of the Rules of the 

House of Representatives, the Committee notes that no rollcall 

votes occurred during the Committee’s consideration of H.R. 361. 

COMMITTEE OVERSIGHT FINDINGS

In compliance with clause 3(c)(1) of rule XIII of the Rules of the 

House of Representatives, the Committee reports that the findings 

and recommendations of the Committee, based on oversight activities under clause 2(b)(1) of rule X of the Rules of the House of Representatives, are incorporated in the descriptive portions of this report. 

NEW BUDGET AUTHORITY AND TAX EXPENDITURES

Clause 3(c)(2) of House rule XIII is inapplicable because this legislation does not provide new budgetary authority or increased tax 

expenditures. 

CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

In compliance with clause 3(c)(3) of rule XIII of the Rules of the 

House of Representatives, the Committee sets forth, with respect to 

the bill, H.R. 361, the following estimate and comparison prepared 

by the Director of the Congressional Budget Office under section 

402 of the Congressional Budget Act of 1974:

U.S. CONGRESS, CONGRESSIONAL BUDGET OFFICE, Washington, DC, May 28, 2003. 

Hon. F. JAMES SENSENBRENNER, Jr., Chairman, 

Committee on the Judiciary, 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 361, the Sports Agent Responsibility and Trust Act. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contacts are Julie Middleton (for 

Federal costs), who can be reached at 226-2860, Victoria Heid Hall 

and Gregory Waring (for the state and local impact), who can be 

7

reached at 225-2330, and Paige Piper/Bach (for the private-sector 

impact), who can be reached at 226-2940. 

Sincerely, 

DOUGLAS HOLTZ-EAKIN.

Enclosure

cc: Honorable John Conyers, Jr. 

Ranking Member 

H.R. 361—Sports Agent Responsibility and Trust Act. 

H.R. 361 would impose certain restrictions on contracts between 

sports agents and student athletes. For example, the bill would 

prohibit sports agents from soliciting such a contract by making 

false promises or offering gifts. These new rules would be enforced 

by the Federal Trade Commission (FTC) through civil penalties 

and by the States. 

CBO estimates that enacting H.R. 361 would not have a significant impact on the Federal budget. Based on information from the 

FTC, CBO expects that enforcement of the bill would occur mostly 

at the State level. Therefore, CBO expects that any increase in civil 

penalties resulting from the enactment of H.R. 361 would be insignificant. (Such penalties are recorded in the budget as revenues.) 

Similarly, we estimate that implementing H.R. 361 would increase 

the FTC’s costs by less than $500,000 annually, assuming the 

availability of appropriated funds. 

H.R. 361 contains no intergovernmental mandates as defined in 

the Unfunded Mandates Reform Act (UMRA) and would impose no 

costs on State, local, or tribal governments. 

H.R. 361 would impose private-sector mandates as defined by 

UMRA on certain sports agents and student athletes. The bill 

would prohibit a sports agent from providing anything of value to 

a student athlete or anyone associated with the athlete before entering into a contract. An agent also would be required to provide 

a student athlete with a specific disclosure document before entering into an agency contract and could not predate or postdate such 

a contract. The bill would require a student athlete, or the athlete’s 

parents or legal guardian if the student is under the age of 18, to 

sign the disclosure document prior to entering into an agency contract. In addition, the bill would require the sports agent and student athlete to each inform the student’s educational institution 

within a specific time frame that the athlete has entered into an 

agency contract. Based on information from government sources, 

CBO estimates that the direct cost of those mandates would fall 

well below the annual threshold established by UMRA for privatesector mandates ($117 million in 2003, adjusted annually for inflation). 

On January 31, 2003, CBO transmitted a cost estimate for H.R. 

361 as ordered reported by the House Committee on Energy and 

Commerce on January 29, 2003. The two versions of the bill are 

similar, and the cost estimates are identical. 

The CBO staff contacts for this estimate are Julie Middleton (for 

Federal costs), who can be reached at 226–2860, Victoria Heid Hall 

and Gregory Waring (for the State and local impact), who can be 

reached at 225–2330, and Paige Piper/Bach (for the private-sector 

impact), who can be reached at 226-2940. The estimate was apVerDate Jan 31 2003 01:51 Jun 04, 2003 Jkt 019006 PO 00000 Frm 00007 Fmt 6659 Sfmt 6601 E:\HR\OC\HR024P2.XXX HR024P2
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proved by Peter H. Fontaine, Deputy Assistant Director for Budget 

Analysis. 

PERFORMANCE GOALS AND OBJECTIVES

H.R. 361 does not authorize funding. Therefore, clause 3(c)(4) of 

rule XIII of the Rules of the House of Representatives is inapplicable. 

CONSTITUTIONAL AUTHORITY STATEMENT

Pursuant to clause 3(d)(1) of rule XIII of the Rules of the House 

of Representatives, the Committee finds the authority for this legislation in article I, section 8, of the Constitution. 

SECTION-BY-SECTION ANALYSIS AND DISCUSSION

Section 1 provides that this Act may be cited as the ‘‘Sports 

Agent Responsibility and Trust Act.’’

Section 2 defines terms used within the bill. Of special note is 

the definition of ‘‘athlete agent,’’ which is limited to those who are 

representing the athlete under an agency contract, and is not 

meant to deter other legal counsel or assistance. 

Section 3 defines conduct prohibited by an athlete agent. Prohibited acts include giving false or misleading information; providing 

anything of value to the athlete or anyone associated with the athlete before entering into a representative contract; requiring disclosure at the time of signing into the contract that the athlete may 

forfeit NCAA eligibility as a result of the signing of the contract; 

and the predating or postdating of the contract. 

Section 4 defines a violation of this Act as an unfair or deceptive 

act or practice, and as such, a violation enforceable under the Federal Trade Commission guidelines relating to such a violation. 

Section 5 gives an attorney general of a State where this action 

occurs standing to enforce this Act. The attorney general may file 

a civil action on behalf of the inhabitants of the State to enjoin the 

actions, enforce compliance with this act, and obtain damages, restitution, or other compensation on behalf of the residents of the 

State. 

Section 6 gives protection to educational institutions which are 

damaged as a result of the conduct this act seeks to prevent. If 

proper notice, which should occur within 72 hours after signing an 

agency agreement or the next athletic event which the student athlete may participate in (whichever occurs first), is not given to the 

individual in charge of that university’s athletic program, a violation of this act occurs. After such violation, the educational institution is given a civil remedy for the damages the institution suffered 

as a result of the non-disclosure. 

Section 7 states that nothing in this act is meant to prohibit an 

individual from seeking any remedies available to them under existing State law or equity. Mr. Watt’s amendment, which was 

adopted by the full Committee, extended this provision to existing 

Federal remedies. 

Section 8 expresses the sense of Congress that States should 

enact the UAAA as drafted by the Uniform Conference of Commissioners on Uniform State Laws. 

9

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, the Committee notes H.R. 361 makes no 

changes to existing law.

MARKUP TRANSCRIPT

BUSINESS MEETING 

WEDNESDAY, MAY 21, 2003

HOUSE OF REPRESENTATIVES, 

COMMITTEE ON THE JUDICIARY, 

Washington, DC. 

The Committee met, pursuant to notice, at 10:01 a.m., in Room 

2141, Rayburn House Office Building, Hon. F. James Sensenbrenner, Jr. (Chairman of the Committee) presiding. 

[Intervening business.] 

Chairman SENSENBRENNER. The next item on the agenda is H.R. 

361, the ‘‘Sports Agent Responsibility and Trust Act.’’ The Chair 

recognizes the gentleman from Utah, Mr. Cannon, the Chairman of 

the Subcommittee on Commercial and Administrative Law, for a 

motion. 

Mr. CANNON. The Subcommittee on Commercial and Administrative Law favorably reports the bill H.R. 361 with a single amendment in the nature of a substitute and urges—or moves its adoption by the full Committee. 

Chairman SENSENBRENNER. Without objection, the bill will be 

considered as read and open for amendment at any point. 

[The bill, H.R. 361, follows:]

10

1

I

108TH CONGRESS

1ST SESSION H. R. 361

To designate certain conduct by sports agents relating to the signing of

contracts with student athletes as unfair and deceptive acts or practices

to be regulated by the Federal Trade Commission.

IN THE HOUSE OF REPRESENTATIVES

JANUARY 27, 2003

Mr. GORDON (for himself, Mr. OSBORNE, Mr. DINGELL, Mr. BROWN of Ohio,

Mr. LUCAS of Kentucky, Mr. SERRANO, Ms. NORTON, Mr. SIMMONS, Mr.

DUNCAN, Mr. HAYES, Mr. WAMP, Mr. TOWNS, Mr. WILSON of South

Carolina, Mr. MATHESON, Mr. ENGEL, Mr. RAMSTAD, Mr. RUSH, Ms.

MCCARTHY of Missouri, Mr. LEACH, Mr. SHIMKUS, Mr. DEUTSCH, Mr.

STEARNS, Mr. DOYLE, Mr. BURR, Mrs. CAPPS, Mr. PICKERING, and Mr.

UPTON) introduced the following bill; which was referred to the Committee on Energy and Commerce

A BILL

To designate certain conduct by sports agents relating to

the signing of contracts with student athletes as unfair

and deceptive acts or practices to be regulated by the

Federal Trade Commission.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Sports Agent Respon5 sibility and Trust Act’’.


I361.AAB
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•HR 361 IH

1 SEC. 2. DEFINITIONS.

2 As used in this Act, the following definitions apply:

3 (1) AGENCY CONTRACT.—The term ‘‘agency

4 contract’’ means an oral or written agreement in

5 which a student athlete authorizes a person to nego6 tiate or solicit on behalf of the student athlete a pro7 fessional sports contract or an endorsement contract.

8 (2) ATHLETE AGENT.—The term ‘‘athlete

9 agent’’ means an individual who enters into an agen10 cy contract with a student athlete, or directly or in11 directly recruits or solicits a student athlete to enter

12 into an agency contract, and does not include a

13 spouse, parent, sibling, grandparent, or guardian of

14 such student athlete, or an individual acting solely

15 on behalf of a professional sports team or profes16 sional sports organization.

17 (3) ATHLETIC DIRECTOR.—The term ‘‘athletic

18 director’’ means an individual responsible for admin19 istering the athletic program of an educational insti20 tution or, in the case that such program is adminis21 tered separately, the athletic program for male stu22 dents or the athletic program for female students, as

23 appropriate.

24 (4) COMMISSION.—The term ‘‘Commission’’

25 means the Federal Trade Commission.


I361.AAC
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•HR 361 IH

1 (5) ENDORSEMENT CONTRACT.—The term ‘‘en2 dorsement contract’’ means an agreement under

3 which a student athlete is employed or receives con4 sideration for the use by the other party of that in5 dividual’s person, name, image, or likeness in the

6 promotion of any product, service, or event.

7 (6) INTERCOLLEGIATE SPORT.—The term

8 ‘‘intercollegiate sport’’ means a sport played at the

9 collegiate level for which eligibility requirements for

10 participation by a student athlete are established by

11 a national association for the promotion or regula12 tion of college athletics.

13 (7) PROFESSIONAL SPORTS CONTRACT.—The

14 term ‘‘professional sports contract’’ means an agree15 ment under which an individual is employed, or

16 agrees to render services, as a player on a profes17 sional sports team, with a professional sports organi18 zation, or as a professional athlete.

19 (8) STATE.—The term ‘‘State’’ includes a State

20 of the United States, the District of Columbia, Puer21 to Rico, the United States Virgin Islands, or any

22 territory or insular possession subject to the jurisdic23 tion of the United States.

24 (9) STUDENT ATHLETE.—The term ‘‘student

25 athlete’’ means an individual who engages in, is eliVerDate Jan 31 2003 01:51 Jun 04, 2003 Jkt 019006 PO 00000 Frm 00012 Fmt 6659 Sfmt 6601 E:\HR\OC\HR024P2.XXX HR024P2

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•HR 361 IH

1 gible to engage in, or may be eligible in the future

2 to engage in, any intercollegiate sport. An individual

3 who is permanently ineligible to participate in a par4 ticular intercollegiate sport is not a student athlete

5 for purposes of that sport.

6 SEC. 3. REGULATION OF UNFAIR AND DECEPTIVE ACTS

7 AND PRACTICES IN CONNECTION WITH THE

8 CONTACT BETWEEN AN ATHLETE AGENT AND

9 A STUDENT ATHLETE.

10 (a) CONDUCT PROHIBITED.—It is unlawful for an

11 athlete agent to—

12 (1) directly or indirectly recruit or solicit a stu13 dent athlete to enter into an agency contract, by—

14 (A) giving any false or misleading informa15 tion or making a false promise or representa16 tion; or

17 (B) providing anything of value to a stu18 dent athlete or anyone associated with the stu19 dent athlete before the student athlete enters

20 into an agency contract;

21 (2) enter into an agency contract with a stu22 dent athlete without providing the student athlete

23 with the disclosure document described in subsection

24 (b); or

25 (3) predate or postdate an agency contract.


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•HR 361 IH

1 (b) REQUIRED DISCLOSURE BY ATHLETE AGENTS

2 TO STUDENT ATHLETES.—

3 (1) IN GENERAL.—In conjunction with the en4 tering into of an agency contract, an athlete agent

5 shall provide to the student athlete, or, if the stu6 dent athlete is under the age of 18, to such student

7 athlete’s parent or legal guardian, a disclosure docu8 ment that meets the requirements of this subsection.

9 Such disclosure document is separate from and in

10 addition to any disclosure which may be required

11 under State law.

12 (2) SIGNATURE OF STUDENT ATHLETE.—The

13 disclosure document must be signed by the student

14 athlete, or, if the student athlete is under the age of

15 18, by such student athlete’s parent or legal guard16 ian, prior to entering into the agency contract.

17 (3) REQUIRED LANGUAGE.—The disclosure doc18 ument must contain, in close proximity to the signa19 ture of the student athlete, or, if the student athlete

20 is under the age of 18, the signature of such student

21 athlete’s parent or legal guardian, a conspicuous no22 tice in boldface type stating: ‘‘Warning to Student

23 Athlete: If you agree orally or in writing to be rep24 resented by an agent now or in the future you may

25 lose your eligibility to compete as a student athlete


I361.AAF
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6

•HR 361 IH

1 in your sport. Within 72 hours after entering into

2 this contract or before the next athletic event in

3 which you are eligible to participate, whichever oc4 curs first, both you and the agent by whom you are

5 agreeing to be represented must notify the athletic

6 director of the educational institution at which you

7 are enrolled, or other individual responsible for ath8 letic programs at such educational institution, that

9 you have entered into an agency contract.’’.

10 SEC. 4. ENFORCEMENT.

11 (a) UNFAIR OR DECEPTIVE ACT OR PRACTICE.—A

12 violation of this Act shall be treated as a violation of a

13 rule defining an unfair or deceptive act or practice pre14 scribed under section 18(a)(1)(B) of the Federal Trade

15 Commission Act (15 U.S.C. 57a(a)(1)(B)).

16 (b) ACTIONS BY THE COMMISSION.—The Commis17 sion shall enforce this Act in the same manner, by the

18 same means, and with the same jurisdiction, powers, and

19 duties as though all applicable terms and provisions of the

20 Federal Trade Commission Act (15 U.S.C. 41 et seq.)

21 were incorporated into and made a part of this Act.

22 SEC. 5. ACTIONS BY STATES.

23 (a) IN GENERAL.—

24 (1) CIVIL ACTIONS.—In any case in which the

25 attorney general of a State has reason to believe


I361.AAG
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7

•HR 361 IH

1 that an interest of the residents of that State has

2 been or is threatened or adversely affected by the

3 engagement of any athlete agent in a practice that

4 violates section 3 of this Act, the State may bring

5 a civil action on behalf of the residents of the State

6 in a district court of the United States of appro7 priate jurisdiction to—

8 (A) enjoin that practice;

9 (B) enforce compliance with this Act;

10 (C) obtain damage, restitution, or other

11 compensation on behalf of residents of the

12 State; or

13 (D) obtain such other relief as the court

14 may consider to be appropriate.

15 (2) NOTICE.—

16 (A) IN GENERAL.—Before filing an action

17 under paragraph (1), the attorney general of

18 the State involved shall provide to the

19 Commission—

20 (i) written notice of that action; and

21 (ii) a copy of the complaint for that

22 action.

23 (B) EXEMPTION.—Subparagraph (A) shall

24 not apply with respect to the filing of an action

25 by an attorney general of a State under this


I361.AAH
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8

•HR 361 IH

1 subsection, if the attorney general determines

2 that it is not feasible to provide the notice de3 scribed in that subparagraph before filing of the

4 action. In such case, the attorney general of a

5 State shall provide notice and a copy of the

6 complaint to the Commission at the same time

7 as the attorney general files the action.

8 (b) INTERVENTION.—

9 (1) IN GENERAL.—On receiving notice under

10 subsection (a)(2), the Commission shall have the

11 right to intervene in the action that is the subject

12 of the notice.

13 (2) EFFECT OF INTERVENTION.—If the Com14 mission intervenes in an action under subsection (a),

15 it shall have the right—

16 (A) to be heard with respect to any matter

17 that arises in that action; and

18 (B) to file a petition for appeal.

19 (c) CONSTRUCTION.—For purposes of bringing any

20 civil action under subsection (a), nothing in this title shall

21 be construed to prevent an attorney general of a State

22 from exercising the powers conferred on the attorney gen23 eral by the laws of that State to—

24 (1) conduct investigations;

25 (2) administer oaths or affirmations; or


I361.AAI
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9

•HR 361 IH

1 (3) compel the attendance of witnesses or the

2 production of documentary and other evidence.

3 (d) ACTIONS BY THE COMMISSION.—In any case in

4 which an action is instituted by or on behalf of the Com5 mission for a violation of section 3, no State may, during

6 the pendency of that action, institute an action under sub7 section (a) against any defendant named in the complaint

8 in that action—

9 (e) VENUE.—Any action brought under subsection

10 (a) may be brought in the district court of the United

11 States that meets applicable requirements relating to

12 venue under section 1391 of title 28, United States Code.

13 (f) SERVICE OF PROCESS.—In an action brought

14 under subsection (a), process may be served in any district

15 in which the defendant—

16 (1) is an inhabitant; or

17 (2) may be found.

18 SEC. 6. PROTECTION OF EDUCATIONAL INSTITUTION.

19 (a) NOTICE REQUIRED.—Within 72 hours after en20 tering into an agency contract or before the next athletic

21 event in which the student athlete may participate, which22 ever occurs first, the athlete agent and the student athlete

23 shall each inform the athletic director of the educational

24 institution at which the student athlete is enrolled, or

25 other individual responsible for athletic programs at such


I361.AAJ
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•HR 361 IH

1 educational institution, that the student athlete has en2 tered into an agency contract, and the athlete agent shall

3 provide the athletic director with notice in writing of such

4 a contract.

5 (b) CIVIL REMEDY.—

6 (1) IN GENERAL.—An educational institution

7 has a right of action against an athlete agent for

8 damages caused by a violation of this Act.

9 (2) DAMAGES.—Damages of an educational in10 stitution may include losses and expenses incurred

11 because, as a result of the conduct of the athlete

12 agent, the educational institution was injured by a

13 violation of this Act or was penalized, disqualified,

14 or suspended from participation in athletics by a na15 tional association for the promotion and regulation

16 of athletics, by an athletic conference, or by reason17 able self-imposed disciplinary action taken to miti18 gate actions likely to be imposed by such an associa19 tion or conference.

20 (3) COSTS AND ATTORNEYS FEES.—In an ac21 tion taken under this section, the court may award

22 to the prevailing party costs and reasonable attor23 neys fees.

24 (4) EFFECT ON OTHER RIGHTS, REMEDIES AND

25 DEFENSES.—This section does not restrict the


I361.AAK
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•HR 361 IH

1 rights, remedies, or defenses of any person under

2 law or equity.

3 SEC. 7. SENSE OF CONGRESS.

4 It is the sense of Congress that States should enact

5 the Uniform Athlete Agents Act of 2000 drafted by the

6 National Conference of Commissioners on Uniform State

7 Laws, to protect student athletes and the integrity of ama8 teur sports from unscrupulous sports agents. In par9 ticular, it is the sense of Congress that States should enact

10 the provisions relating to the registration of sports agents,

11 the required form of contract, the right of the student ath12 lete to cancel an agency contract, the disclosure require13 ments relating to record maintenance, reporting, renewal,

14 notice, warning, and security, and the provisions for reci15 procity among the States.

Æ


I361.AAL
21

Chairman SENSENBRENNER. And the Subcommittee amendment 

in the nature of a substitute, which the Members have before them, 

will be considered as read, considered as the original text for purposes of amendment, and open for amendment at any point. 

[The amendment in the nature of a substitute follows:]

22 H.L.C.

SUBSTITUTE AMENDMENT TO H.R. 361

AS REPORTED BY THE SUBCOMMITTEE ON

COMMERCIAL AND ADMINISTRATIVE LAW

1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘Sports Agent Respon3 sibility and Trust Act’’.

4 SEC. 2. DEFINITIONS.

5 As used in this Act, the following definitions apply:

6 (1) AGENCY CONTRACT.—The term ‘‘agency

7 contract’’ means an oral or written agreement in

8 which a student athlete authorizes a person to nego9 tiate or solicit on behalf of the student athlete a pro10 fessional sports contract or an endorsement contract.

11 (2) ATHLETE AGENT.—The term ‘‘athlete

12 agent’’ means an individual who enters into an agen13 cy contract with a student athlete, or directly or in14 directly recruits or solicits a student athlete to enter

15 into an agency contract, and does not include a

16 spouse, parent, sibling, grandparent, or guardian of

17 such student athlete, any legal counsel for purposes

18 other than that of representative agency, or an indi19 vidual acting solely on behalf of a professional sports

20 team or professional sports organization.

21 (3) ATHLETIC DIRECTOR.—The term ‘‘athletic

22 director’’ means an individual responsible for adminVerDate Jan 31 2003 01:51 Jun 04, 2003 Jkt 019006 PO 00000 Frm 00022 Fmt 6659 Sfmt 6601 E:\HR\OC\HR024P2.XXX HR024P2

A361.AAB
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2

H.L.C.

1 istering the athletic program of an educational insti2 tution or, in the case that such program is adminis3 tered separately, the athletic program for male stu4 dents or the athletic program for female students, as

5 appropriate.

6 (4) COMMISSION.—The term ‘‘Commission’’

7 means the Federal Trade Commission.

8 (5) ENDORSEMENT CONTRACT.—The term ‘‘en9 dorsement contract’’ means an agreement under

10 which a student athlete is employed or receives con11 sideration for the use by the other party of that in12 dividual’s person, name, image, or likeness in the

13 promotion of any product, service, or event.

14 (6) INTERCOLLEGIATE SPORT.—The term

15 ‘‘intercollegiate sport’’ means a sport played at the

16 collegiate level for which eligibility requirements for

17 participation by a student athlete are established by

18 a national association for the promotion or regula19 tion of college athletics.

20 (7) PROFESSIONAL SPORTS CONTRACT.—The

21 term ‘‘professional sports contract’’ means an agree22 ment under which an individual is employed, or

23 agrees to render services, as a player on a profes24 sional sports team, with a professional sports organi25 zation, or as a professional athlete.


A361.AAC
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3

H.L.C.

1 (8) STATE.—The term ‘‘State’’ includes a State

2 of the United States, the District of Columbia, Puer3 to Rico, the United States Virgin Islands, or any

4 territory or insular possession subject to the jurisdic5 tion of the United States.

6 (9) STUDENT ATHLETE.—The term ‘‘student

7 athlete’’ means an individual who engages in, is eli8 gible to engage in, or may be eligible in the future

9 to engage in, any intercollegiate sport. An individual

10 who is permanently ineligible to participate in a par11 ticular intercollegiate sport is not a student athlete

12 for purposes of that sport.

13 SEC. 3. REGULATION OF UNFAIR AND DECEPTIVE ACTS

14 AND PRACTICES IN CONNECTION WITH THE

15 CONTACT BETWEEN AN ATHLETE AGENT AND

16 A STUDENT ATHLETE.

17 (a) CONDUCT PROHIBITED.—It is unlawful for an

18 athlete agent to—

19 (1) directly or indirectly recruit or solicit a stu20 dent athlete to enter into an agency contract, by—

21 (A) giving any false or misleading informa22 tion or making a false promise or representa23 tion; or

24 (B) providing anything of value to a stu25 dent athlete or anyone associated with the stuVerDate Jan 31 2003 01:51 Jun 04, 2003 Jkt 019006 PO 00000 Frm 00024 Fmt 6659 Sfmt 6601 E:\HR\OC\HR024P2.XXX HR024P2

A361.AAD
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4

H.L.C.

1 dent athlete before the student athlete enters

2 into an agency contract, including any consider3 ation in the form of a loan, or acting in the ca4 pacity of a guarantor or co-guarantor for any

5 debt;

6 (2) enter into an agency contract with a stu7 dent athlete without providing the student athlete

8 with the disclosure document described in subsection

9 (b); or

10 (3) predate or postdate an agency contract.

11 (b) REQUIRED DISCLOSURE BY ATHLETE AGENTS

12 TO STUDENT ATHLETES.—

13 (1) IN GENERAL.—In conjunction with the en14 tering into of an agency contract, an athlete agent

15 shall provide to the student athlete, or, if the stu16 dent athlete is under the age of 18, to such student

17 athlete’s parent or legal guardian, a disclosure docu18 ment that meets the requirements of this subsection.

19 Such disclosure document is separate from and in

20 addition to any disclosure which may be required

21 under State law.

22 (2) SIGNATURE OF STUDENT ATHLETE.—The

23 disclosure document must be signed by the student

24 athlete, or, if the student athlete is under the age of


A361.AAE
26

5

H.L.C.

1 18, by such student athlete’s parent or legal guard2 ian, prior to entering into the agency contract.

3 (3) REQUIRED LANGUAGE.—The disclosure doc4 ument must contain, in close proximity to the signa5 ture of the student athlete, or, if the student athlete

6 is under the age of 18, the signature of such student

7 athlete’s parent or legal guardian, a conspicuous no8 tice in boldface type stating: ‘‘Warning to Student

9 Athlete: If you agree orally or in writing to be rep10 resented by an agent now or in the future you may

11 lose your eligibility to compete as a student athlete

12 in your sport. Within 72 hours after entering into

13 this contract or before the next athletic event in

14 which you are eligible to participate, whichever oc15 curs first, both you and the agent by whom you are

16 agreeing to be represented must notify the athletic

17 director of the educational institution at which you

18 are enrolled, or other individual responsible for ath19 letic programs at such educational institution, that

20 you have entered into an agency contract.’’.

21 SEC. 4. ENFORCEMENT.

22 (a) UNFAIR OR DECEPTIVE ACT OR PRACTICE.—A

23 violation of this Act shall be treated as a violation of a

24 rule defining an unfair or deceptive act or practice preVerDate Jan 31 2003 01:51 Jun 04, 2003 Jkt 019006 PO 00000 Frm 00026 Fmt 6659 Sfmt 6601 E:\HR\OC\HR024P2.XXX HR024P2

A361.AAF
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6

H.L.C.

1 scribed under section 18(a)(1)(B) of the Federal Trade

2 Commission Act (15 U.S.C. 57a(a)(1)(B)).

3 (b) ACTIONS BY THE COMMISSION.—The Commis4 sion shall enforce this Act in the same manner, by the

5 same means, and with the same jurisdiction, powers, and

6 duties as though all applicable terms and provisions of the

7 Federal Trade Commission Act (15 U.S.C. 41 et seq.)

8 were incorporated into and made a part of this Act.

9 SEC. 5. ACTIONS BY STATES.

10 (a) IN GENERAL.—

11 (1) CIVIL ACTIONS.—In any case in which the

12 attorney general of a State has reason to believe

13 that an interest of the residents of that State has

14 been or is threatened or adversely affected by the

15 engagement of any athlete agent in a practice that

16 violates section 3 of this Act, the State may bring

17 a civil action on behalf of the residents of the State

18 in a district court of the United States of appro19 priate jurisdiction to—

20 (A) enjoin that practice;

21 (B) enforce compliance with this Act; or

22 (C) obtain damage, restitution, or other

23 compensation on behalf of residents of the

24 State.

25 (2) NOTICE.—


A361.AAG
28

7

H.L.C.

1 (A) IN GENERAL.—Before filing an action

2 under paragraph (1), the attorney general of

3 the State involved shall provide to the

4 Commission—

5 (i) written notice of that action; and

6 (ii) a copy of the complaint for that

7 action.

8 (B) EXEMPTION.—Subparagraph (A) shall

9 not apply with respect to the filing of an action

10 by an attorney general of a State under this

11 subsection, if the attorney general determines

12 that it is not feasible to provide the notice de13 scribed in that subparagraph before filing of the

14 action. In such case, the attorney general of a

15 State shall provide notice and a copy of the

16 complaint to the Commission at the same time

17 as the attorney general files the action.

18 (b) INTERVENTION.—

19 (1) IN GENERAL.—On receiving notice under

20 subsection (a)(2), the Commission shall have the

21 right to intervene in the action that is the subject

22 of the notice.

23 (2) EFFECT OF INTERVENTION.—If the Com24 mission intervenes in an action under subsection (a),

25 it shall have the right—


A361.AAH
29

8

H.L.C.

1 (A) to be heard with respect to any matter

2 that arises in that action; and

3 (B) to file a petition for appeal.

4 (c) CONSTRUCTION.—For purposes of bringing any

5 civil action under subsection (a), nothing in this title shall

6 be construed to prevent an attorney general of a State

7 from exercising the powers conferred on the attorney gen8 eral by the laws of that State to—

9 (1) conduct investigations;

10 (2) administer oaths or affirmations; or

11 (3) compel the attendance of witnesses or the

12 production of documentary and other evidence.

13 (d) ACTIONS BY THE COMMISSION.—In any case in

14 which an action is instituted by or on behalf of the Com15 mission for a violation of section 3, no State may, during

16 the pendency of that action, institute an action under sub17 section (a) against any defendant named in the complaint

18 in that action—

19 (e) VENUE.—Any action brought under subsection

20 (a) may be brought in the district court of the United

21 States that meets applicable requirements relating to

22 venue under section 1391 of title 28, United States Code.

23 (f) SERVICE OF PROCESS.—In an action brought

24 under subsection (a), process may be served in any district

25 in which the defendant—


A361.AAI
30

9

H.L.C.

1 (1) is an inhabitant; or

2 (2) may be found.

3 SEC. 6. PROTECTION OF EDUCATIONAL INSTITUTION.

4 (a) NOTICE REQUIRED.—Within 72 hours after en5 tering into an agency contract or before the next athletic

6 event in which the student athlete may participate, which7 ever occurs first, the athlete agent and the student athlete

8 shall each inform the athletic director of the educational

9 institution at which the student athlete is enrolled, or

10 other individual responsible for athletic programs at such

11 educational institution, that the student athlete has en12 tered into an agency contract, and the athlete agent shall

13 provide the athletic director with notice in writing of such

14 a contract.

15 (b) CIVIL REMEDY.—

16 (1) IN GENERAL.—An educational institution

17 has a right of action against an athlete agent for

18 damages caused by a violation of this Act.

19 (2) DAMAGES.—Damages of an educational in20 stitution may include and are limited to actual losses

21 and expenses incurred because, as a result of the

22 conduct of the athlete agent, the educational institu23 tion was injured by a violation of this Act or was pe24 nalized, disqualified, or suspended from participation

25 in athletics by a national association for the proVerDate Jan 31 2003 01:51 Jun 04, 2003 Jkt 019006 PO 00000 Frm 00030 Fmt 6659 Sfmt 6601 E:\HR\OC\HR024P2.XXX HR024P2

A361.AAJ
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10

H.L.C.

1 motion and regulation of athletics, by an athletic

2 conference, or by reasonable self-imposed discipli3 nary action taken to mitigate actions likely to be im4 posed by such an association or conference.

5 (3) COSTS AND ATTORNEYS FEES.—In an ac6 tion taken under this section, the court may award

7 to the prevailing party costs and reasonable attor8 neys fees.

9 (4) EFFECT ON OTHER RIGHTS, REMEDIES AND

10 DEFENSES.—This section does not restrict the

11 rights, remedies, or defenses of any person under

12 law or equity.

13 SEC. 7. LIMITATION.

14 Nothing in this Act shall be construed to prohibit an

15 individual from seeking any remedies available under ex16 isting State law or equity.

17 SEC. 8. SENSE OF CONGRESS.

18 It is the sense of Congress that States should enact

19 the Uniform Athlete Agents Act of 2000 drafted by the

20 National Conference of Commissioners on Uniform State

21 Laws, to protect student athletes and the integrity of ama22 teur sports from unscrupulous sports agents. In par23 ticular, it is the sense of Congress that States should enact

24 the provisions relating to the registration of sports agents,

25 the required form of contract, the right of the student athVerDate Jan 31 2003 01:51 Jun 04, 2003 Jkt 019006 PO 00000 Frm 00031 Fmt 6659 Sfmt 6601 E:\HR\OC\HR024P2.XXX HR024P2

A361.AAK
32

11

H.L.C.

1 lete to cancel an agency contract, the disclosure require2 ments relating to record maintenance, reporting, renewal,

3 notice, warning, and security, and the provisions for reci4 procity among the States.


A361.AAL
33

Chairman SENSENBRENNER. The Chair recognizes the gentleman 

from Utah, Mr. Cannon, to strike the last word. 

Mr. CANNON. Thank you, Mr. Chairman. 

The Subcommittee held a hearing on this bill on May 15th and 

reported the bill the same day. The Subcommittee adopted an 

amendment of a substitute with bipartisan support, clarifying a 

number of matters within the bill as well as specifically preserving 

the right of student athletes to seek individual redress from any 

contractual violations under existing State law or equity. 

Mr. Chairman, this is an important piece of legislation and one 

which deserves the Committee’s full support. H.R. 361 will address 

the interaction of sports agents with student athletes. It will give 

guidelines for sports agents to adhere to in the recruitment and 

allow the Federal Trade Commission or the attorney general of the 

State of occurrence to go after agents who do not adhere to the 

guidelines. Set out in this bill—that is, the guidelines set out in 

this bill. 

In addition, it provides a cause of action for educational institutions against a sport agent whose actions result in making a player 

ineligible for collegiate competition. In an all too common sequence 

of unethical conduct, such agents often fail to properly notify the 

university, thus causing sanctions, forfeitures, or other penalties to 

the university for which it has no fault. 

This bill is patterned after language in the Uniform Athlete 

Agents Act, which has been adopted by over 20 States. The need 

for a Federal solution is clear when one considers the interstate nature of collegiate athletics. Currently there is nothing to stop an 

unscrupulous sports agent from victim shopping—or victim forum 

shopping by waiting to approach star athletes in States with no appropriate enforcement tools, States where those actions can occur 

without fear of retribution or redress. 

This bill does not indict the conduct of all sports agents. Not all 

are the Bob Sugars, as depicted in the movie ‘‘Jerry Maguire.’’ The 

bill seeks to protect the often guileless student athlete from reallife consequences of dealing with the unscrupulous. H.R. 361 was 

originally referred to the Committee on Energy and Commerce, 

which reported this legislation by voice vote on January 29th. The 

Committee on Judiciary received a sequential referral, which expires on June 1. 

Again, I urge the Committee to support this bill. Thank you, Mr. 

Chairman. 

Chairman SENSENBRENNER. In the absence of Mr. Watt, does any 

Member of the minority wish to make an opening statement? If 

not, without objection, all Members may enter opening statements 

in the record at this point. 

Are there amendments? 

Ms. JACKSON LEE. Mr. Chairman? 

Chairman SENSENBRENNER. Does Mr. Watt have an opening 

statement he’d like to make? 

Mr. WATT. No, I don’t have an opening statement. I have an 

amendment, though. 

Chairman SENSENBRENNER. Okay. 

Mr. WATT. Whenever you get to that point. 

Chairman SENSENBRENNER. We’re at that point now. The clerk 

will report the Watt amendment. 

34

The CLERK. Mr. Chairman, I don’t have a Watt amendment. 

Mr. WATT. Right here. 

Chairman SENSENBRENNER. The clerk will forbear. 

The clerk will now report the Watt amendment. 

The CLERK. Amendment to the amendment in the nature of a 

substitute to H.R.—— Mr. WATT. Mr. Chairman, I ask unanimous consent that the 

amendment be considered as read. 

The CLERK.—361 offered by Mr.—— Chairman SENSENBRENNER. Without objection, the amendment is 

considered as read. 

[Mr. Watt’s amendment follows:]

Chairman SENSENBRENNER. The gentleman from North Carolina 

is recognized for 5 minutes. 

Mr. WATT. I thank the Chairman, and I apologize to the Chairman for being in and out. But there are two markups going on. 

Fortunately, they’re all in the same hall, and I’m trying to run 

back and forth. 

The question came up in the Subcommittee about whether individuals have a cause of action under this bill as opposed to just the 

FTC and universities who may be adversely impacted by the acts 

of agents. And Mr. Cannon clarified that partially in his amendment to the bill which was passed in the Subcommittee during our 

Subcommittee consideration. Unfortunately, Mr. Cannon’s amendment makes it explicit that whatever individual rights a person has 

under State law or equity are protected, but he didn’t—his amendment didn’t make reference to Federal law. And I’m not sure that 

there are causes of action under the Federal law other than with 

the FTC. But after looking at this quite extensively, I thought—

and I think everybody agrees—that we should not be wiping out 

any individual causes of action that individual claimants might 

have as a result of passing this legislation, which is designed to advance accountability on the part of sports agents. 

And so this simply makes it clear that if there are other potential 

Federal causes of action other than under this bill, individual student athletes would have the right to pursue them also, and I will 

yield to Mr. Cannon if he is trying to get me to yield. 

Mr. CANNON. Thank you. I was actually just wanting to let you 

finish before I asked a question. 

I’m not sure whether or not to oppose or accept the amendment. 

I can’t think of anything—a Federal action that exists now that 

would favor students. Do you have something in mind when 

you——

Mr. WATT. No, I don’t. But I guess, in effect, what we’re saying 

is if there is any individual cause of action under Federal law, we 


A361A.eps
35

don’t want to foreclose that. We’re not creating a cause of action, 

but we want to make it explicit that we’re not foreclosing the cause 

of action. 

Mr. CANNON. If the gentleman would yield further, it is my sense 

that what we’re doing with this section is to not limit, and I don’t 

have a sense of the implications of adding Federal, except to suggest that we don’t want to—we don’t want to federalize more than 

we’re trying to—we’re trying to be very narrow in what we’re doing 

with this and not expand Federal actions or causes of action. 

Mr. WATT. And I absolutely agree with the gentleman, and if the 

gentleman will take a look at his language that he inserted at the 

Subcommittee level with the amendment that you offered, on page 

10 you say, ‘‘Nothing in this Act shall be construed to prohibit an 

individual from seeking any remedies available under existing 

State law or equity.’’

All we’re doing is applying the same thing to any remedies that 

might——

Chairman SENSENBRENNER. Will the gentleman yield? 

Mr. WATT.—exist under Federal law. 

Chairman SENSENBRENNER. Will the gentleman yield? 

Mr. WATT. I’m happy to yield to the Chairman. 

Chairman SENSENBRENNER. I think the amendment is a logical 

one, and I’m particularly concerned if ‘‘Federal’’ is left out that a 

diversity suit against a sports agent that did not reside in the 

State where the student or the educational institution resided 

would end up being precluded from going into Federal court. So I 

think the gentleman’s amendment is a constructive addition. 

Mr. WATT. Well, I thank the gentleman, and the gentleman 

knows——

Mr. CANNON. Would the gentleman——

Mr. WATT.—support getting all these things into Federal court. 

So——

Mr. CANNON. Would the gentleman yield for a further question? 

Mr. WATT. Yes, I will yield to Mr. Cannon. 

Mr. CANNON. We’re about to——

Mr. WATT. I was saying that facetiously, of course, Mr. Chairman. 

Mr. CANNON. We’re about to mark up a class action lawsuit. Does 

the gentleman anticipate that this will have any effect on class actions? 

Mr. WATT. No, sir. I don’t think so. These are individual actions 

that we’re dealing with. 

Chairman SENSENBRENNER. If the gentleman will yield further, 

it might have an effect on class actions if there are a whole lot of 

athletes that are——

Mr. WATT. Right, that could possibly be. But we’re still—hope 

springs eternal that the next bill will be defeated. 

Chairman SENSENBRENNER. The gentleman’s time has expired. 

The question——

Mr. CANNON. Mr. Chairman, I’m willing to accept the gentleman’s amendment and would like to go on record saying that. 

Chairman SENSENBRENNER. The question is on adoption of the 

amendment offered by the gentleman from North Carolina, Mr. 

Watt. Those in favor will say aye. Opposed, no. 

36

The ayes appear to have it. The ayes have it, and the amendment is agreed to. 

Are there further amendments? If there are no further amendments, the Chair notes the presence of a reporting quorum. Those 

in favor of reporting the bill favorably will say aye. Opposed, no. 

The ayes appear to have it. The ayes have it, and the motion to 

report favorably is agreed to. 

Without objection, the bill will be reported favorably to the 

House in the form of a single amendment in the nature of a substitute as amended, incorporating the amendments offered here 

today. Without objection—adopted here today, excuse me. Without 

objection, the Chairman is authorized to move to go to conference 

pursuant to House rules. Without objection, the staff is directed to 

make any technical and conforming changes, and all Members will 

be given 2 days as provided by House rules in which to submit additional, dissenting, supplemental, or minority views.

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