H. R. 361

One Hundred Eighth Congress

of the

United States of America

AT THE SECOND SESSION

Begun and held at the City of Washington on Tuesday,

the twentieth day of January, two thousand and four

An Act

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.

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress assembled,

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:

(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.
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(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 your sport. Within 72 hours

after entering into this contract or before the next athletic
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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.
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(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—

(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.
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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.

Speaker of the House of Representatives.

Vice President of the United States and

President of the Senate.