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 author-
izes a person to negotiate or solicit on behalf of the student
athlete a professional sports contract or an endorsement con-
tract.
(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 Fed-
eral Trade Commission.
(5) ENDORSEMENT CONTRACT.—The term ‘‘endorsement con-
tract’’ 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 ‘‘profes-
sional 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 PRAC-
TICES 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 docu-
ment 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 sub-
section. 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 docu-
ment 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 Stu-
dent 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 edu-
cational institution at which you are enrolled, or other indi-
vidual 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 para-
graph (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 Commis-
sion 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 inter-
venes 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 reason-
able 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.