Source: http://legis.delaware.gov/json/BillDetail/GenerateHtmlDocument?legislationId=26731&legislationTypeId=1&docTypeId=2&legislationName=SB223
Timestamp: 2019-04-23 16:11:52+00:00

Document:
Chapter 54. Delaware Revised Uniform Athlete Agents Act.
(1) “Agency contract” means an agreement in which a student athlete authorizes a person to negotiate or solicit on behalf of the athlete a professional-sports-services contract or endorsement contract.
1. Directly or indirectly recruits or solicits a student athlete to enter into an agency contract or, for compensation, procures employment or offers, promises, attempts, or negotiates to obtain employment for a student athlete as a professional athlete or member of a professional sports team or organization.
A. Serves the athlete in an advisory capacity on a matter related to finances, business pursuits, or career management decisions, unless the individual is an employee of an educational institution acting exclusively as an employee of the institution for the benefit of the institution.
B. Manages the business affairs of the athlete by providing assistance with bills, payments, contracts, or taxes.
A. Gives consideration to the student athlete or another person.
B. Serves the athlete in an advisory capacity on a matter related to finances, business pursuits, or career management decisions.
C. Manages the business affairs of the athlete by providing assistance with bills, payments, contracts, or taxes.
1. Acts solely on behalf of a professional sports team or organization.
A. Also recruits or solicits the athlete to enter into an agency contract.
B. Also, for compensation, procures employment or offers, promises, attempts, or negotiates to obtain employment for the athlete as a professional athlete or member of a professional sports team or organization.
C. Receives consideration for providing the services calculated using a different method than for an individual who is not a student athlete.
(3) “Athletic director” means the 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) “Educational institution” includes a public or private elementary school, secondary school, technical or vocational school, community college, college, and university.
(5) “Endorsement contract” means an agreement under which a student athlete is employed or receives consideration to use on behalf of the other party any value that the athlete may have because of publicity, reputation, following, or fame obtained because of athletic ability or performance.
(6) “Enrolled” means registered for courses and attending athletic practice or class. “Enrolls” has a corresponding meaning.
(7) “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 that promotes or regulates collegiate athletics.
(8) “Interscholastic sport” means a sport played between educational institutions that are not community colleges, colleges, or universities.
(9) “Licensed, registered, or certified professional” means an individual licensed, registered, or certified as an attorney, dealer in securities, financial planner, insurance agent, real estate broker or sales agent, tax consultant, accountant, or member of a profession, other than that of athlete agent, who is licensed, registered, or certified by the state or a nationally recognized organization that licenses, registers, or certifies members of the profession on the basis of experience, education, or testing.
(10) “Person” means an individual; estate; business or nonprofit entity; public corporation; government or governmental subdivision, agency, or instrumentality; or other legal entity.
(11) “Professional-sports-services contract” means an agreement under which an individual is employed as a professional athlete or agrees to render services as a player on a professional sports team or with a professional sports organization.
(13) “Recruit or solicit” means attempt to influence the choice of an athlete agent by a student athlete or, if the athlete is a minor, a parent or guardian of the athlete. “Recruit or solicit” does not include giving advice on the selection of a particular agent in a family, coaching, or social situation unless the individual giving the advice does so because of the receipt or anticipated receipt of an economic benefit, directly or indirectly, from the agent.
(14) “Registration” means registration as an athlete agent under this chapter.
(15) “Secretary” means the Secretary of the Department of State.
a. To execute or adopt a tangible symbol.
(16) “State” means 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.
(17) “Student athlete” means an individual who is eligible to attend an educational institution and engages in, is eligible to engage in, or may be eligible in the future to engage in, any interscholastic or intercollegiate sport. “Student athlete” does not include an individual permanently ineligible to participate in a particular interscholastic or intercollegiate sport for that sport.
§ 5403. Secretary’s authority; procedure.
(a) The Administrative Procedures Act, Chapter 101 of Title 29, applies to this chapter. The Secretary may adopt rules and regulations under the Administrative Procedures Act to implement this chapter.
(b) By acting as an athlete agent in this State, a nonresident individual appoints the Secretary as the individual’s agent for service of process in any civil action in this State related to the individual acting as an athlete agent in this State.
(c) The Secretary may issue a subpoena for material that is relevant to the administration of this chapter.
§ 5404. Athlete agent; registration required; void contract.
(a) Except as otherwise provided in subsection (b) of this section, an individual may not act as an athlete agent in this State without holding a certificate of registration under this chapter.
(1) A student athlete or another person acting on behalf of the athlete initiates communication with the individual.
(2) Not later than 7 days after an initial act that requires the individual to register as an athlete agent, the individual 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 any consideration received under the contract.
§ 5405. Registration as athlete agent; application; requirements; reciprocal registration.
a. The address of the applicant’s principal place of business.
b. Work and mobile telephone numbers.
c. Any means of communicating electronically, including a facsimile number, electronic-mail address, and personal and business or employer websites.
(2) The name of the applicant’s business or employer, if applicable, including for each business or employer, its mailing address, telephone number, organization form, and the nature of the business.
(3) Each social media account with which the applicant or the applicant’s business or employer is affiliated.
(4) Each business or occupation in which the applicant engaged within 5 years before the date of the application, including self-employment and employment by others, and any professional or occupational license, registration, or certification held by the applicant during that time.
a. The applicant’s formal training as an athlete agent.
b. The applicant’s practical experience as an athlete agent.
c. The applicant’s educational background relating to the applicant’s activities as an athlete agent.
(6) The name of each student athlete for whom the applicant acted as an athlete agent within 5 years before the date of the application or, if the individual is a minor, the name of the parent or guardian of the minor, together with the athlete’s sport and last-known team.
a. Is a partner, member, officer, manager, associate, or profit sharer or directly or indirectly holds an equity interest of 5% or greater of the athlete agent’s business if it is not a corporation.
b. Is an officer or director of a corporation employing the athlete agent or a shareholder having an interest of 5% or greater in the corporation.
b. The law-enforcement agency involved.
c. If applicable, the date of the conviction and the fine or penalty imposed.
(10) Whether, within 15 years before the date of application, the applicant, or any person named under paragraph (a)(7) of this section, has been a defendant or respondent in a civil proceeding, including a proceeding seeking an adjudication of incompetence and, if so, the date and a full explanation of each proceeding.
(11) Whether the applicant, or any person named under paragraph (a)(7) of this section, has an unsatisfied judgment or a judgment of continuing effect, including alimony or a domestic order in the nature of child support, which is not current at the date of the application.
(12) Whether, within 10 years before the date of application, the applicant, or any person named under paragraph (a)(7) of this section, was adjudicated bankrupt or was an owner of a business that was adjudicated bankrupt.
(13) Whether there has been any administrative or judicial determination that the applicant, or any person named under paragraph (a)(7) of this section, made a false, misleading, deceptive, or fraudulent representation.
(14) Each instance in which conduct of the applicant, or any person named under paragraph (a)(7) of this section, resulted in the imposition of a sanction, suspension, or declaration of ineligibility to participate in an interscholastic, intercollegiate, or professional athletic event on a student athlete or a sanction on an educational institution.
(15) Each sanction, suspension, or disciplinary action taken against the applicant, or any person named under paragraph (a)(7) of this section, arising out of occupational or professional conduct.
(16) Whether there has been a denial of an application for, suspension or revocation of, refusal to renew, or abandonment of, the registration of the applicant, or any person named under paragraph (a)(7) of this section, as an athlete agent in any state.
(17) Each state in which the applicant currently is registered as an athlete agent or has applied to be registered as an athlete agent.
a. The name of the league or association.
b. The date of certification or registration, and the date of expiration of the certification or registration, if any.
c. If applicable, the date of any denial of an application for, suspension or revocation of, refusal to renew, withdrawal of, or termination of, the certification or registration or any reprimand or censure related to the certification or registration.
(19) Any additional information required by the Secretary.
(1) A copy of the application for registration in the other state.
(2) A statement that identifies any material change in the information on the application or verifies there is no material change in the information, signed under penalty of perjury.
(1) The application and registration requirements of the other state are substantially similar to or more restrictive than this chapter.
(2) The registration has not been revoked or suspended and no action involving the individual’s conduct as an athlete agent is pending against the individual or the individual’s registration in any state.
(1) Cooperate with national organizations concerned with athlete agent issues and agencies in other states which register athlete agents to develop a common registration form and determine which states have laws that are substantially similar to or more restrictive than this chapter.
§ 5406. Certificate of registration; issuance or denial; renewal.
(a) Except as otherwise provided in subsection (b) of this section, the Secretary shall issue a certificate of registration to an applicant for registration who complies with § 5405(a) of this title.
(1) Pleaded guilty or no contest to, has been convicted of, or has charges pending for, a crime that would involve moral turpitude or be a felony if committed in this state.
(4) Engaged in conduct prohibited by § 5414 of this title.
(5) Had a registration as an athlete agent suspended, revoked, or denied in any state.
(6) Been refused renewal of registration as an athlete agent in any state.
(7) Engaged in conduct resulting in imposition of a sanction, suspension, or declaration of ineligibility to participate in an interscholastic, intercollegiate, or professional athletic event on a student athlete or a sanction on an educational institution.
(8) Engaged in conduct that adversely reflects on the applicant’s credibility, honesty, or integrity.
(1) How recently the conduct occurred.
(2) The nature of the conduct and the context in which it occurred.
(d) An athlete agent registered under subsection (a) of this section may apply to renew the registration by submitting an application for renewal in a form prescribed by the Secretary. The applicant shall sign the application for renewal under penalty of perjury and include current information on all matters required in an original application for registration.
(1) The registration requirements of the other state are substantially similar to or more restrictive than this chapter.
(2) The renewed registration has not been suspended or revoked and no action involving the individual’s conduct as an athlete agent is pending against the individual or the individual’s registration in any state.
(f) A certificate of registration or renewal of registration under this chapter is valid for 2 years.
§ 5407. Suspension, revocation, or refusal to renew registration.
(a) The Secretary may limit, suspend, revoke, or refuse to renew a registration of an individual registered under § 5406(a) of this title for conduct that would have justified refusal to issue a certificate of registration under § 5406(b) of this title.
(b) The Secretary may suspend or revoke the registration of an individual registered under § 5405(c) of this title or renewed under § 5406(e) of this title for any reason for which the Secretary could have refused to grant or renew registration or for conduct that would justify refusal to issue a certificate of registration under § 5406(b) of this title.
The Secretary may issue a temporary certificate of registration as an athlete agent while an application for registration or renewal of registration is pending.
§ 5409. Registration and renewal fees.
(a) An application for registration or renewal of registration as an athlete agent must be accompanied by a fee in an amount set by the Secretary that approximates and reasonably reflects all costs necessary to defray the Secretary’s expenses related to the administration of this chapter.
(1) An initial application for registration.
(2) An application for registration based on a certificate of registration issued by another state.
(3) An application for renewal of registration.
(4) An application for renewal of registration based on a renewal of registration in another state.
§ 5410. Required form of agency contract.
(a) An agency contract must be in a record signed by the parties.
(1) A statement that the athlete agent is registered as an athlete agent in this State and a list of any other states in which the agent is registered as an athlete agent.
(2) The amount and method of calculating the consideration to be paid by the student athlete for services to be provided by the agent under the contract and any other consideration the agent has received or will receive from any other source for entering into the contract or providing the services.
(3) The name of any person not listed in the agent’s application for registration or renewal of registration which will be compensated because the athlete signed the contract.
(4) A description of any expenses the athlete agrees to reimburse.
(5) A description of the services to be provided to the athlete.
(6) The duration of the contract.
(d) An agency contract must be accompanied by a separate record signed by the student athlete or, if the athlete is a minor, the parent or guardian of the athlete acknowledging that signing the contract may result in the loss of the athlete’s eligibility to participate in the athlete’s sport.
(f) At the time an agency contract is executed, the athlete agent shall give the student athlete or, if the athlete is a minor, the parent or guardian of the athlete a copy in a record of the contract and the separate acknowledgement required by subsection (d) of this section.
(g) If a student athlete is a minor, an agency contract must be signed by the parent or guardian of the minor and the notice required by subsection (c) of this section must be revised accordingly.
§ 5411. Notice to educational institution.
(a) For purposes of this section, “communicating or attempting to communicate” means contacting or attempting to contact by an in-person meeting, a record, or any other method that conveys or attempts to convey a message.
(b) Not later than 72 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 athlete is enrolled or at which the agent has reasonable grounds to believe the athlete intends to enroll.
(c) Not later than 72 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 shall inform the athletic director of the educational institution at which the athlete is enrolled that the athlete has entered into an agency contract and the name and contact information of the athlete agent.
(d) If an athlete agent enters into an agency contract with a student athlete and the athlete subsequently enrolls at an educational institution, the agent shall notify the athletic director of the institution of the existence of the contract not later than 72 hours after the agent knew or should have known the athlete enrolled.
(1) The relationship was motivated in whole or part by the intention of the agent to recruit or solicit the athlete to enter an agency contract in the future.
(1) The athlete or, if the athlete is a minor, a parent or guardian of the athlete to influence the athlete or parent or guardian to enter into an agency contract.
(2) Another individual to have that individual influence the athlete or, if the athlete is a minor, the parent or guardian of the athlete to enter into an agency contract.
(g) If a communication or attempt to communicate with an athlete agent is initiated by a student athlete or another individual on behalf of the athlete, the agent shall notify in a record the athletic director of any educational institution at which the athlete is enrolled. The notification must be made not later than 10 days after the communication or attempt.
(h) An educational institution that becomes aware of a violation of this chapter by an athlete agent shall notify the Secretary and any professional league or players association with which the institution is aware the agent is licensed or registered of the violation.
§ 5412. Student athlete’s right to cancel.
(a) A student athlete or, if the athlete is a minor, the parent or guardian of the athlete may cancel an agency contract by giving notice in a record of cancellation to the athlete agent not later than 14 days after the contract is signed.
(b) A student athlete or, if the athlete is a minor, the parent or guardian of the athlete may not waive the right to cancel an agency contract.
(c) If a student athlete, parent, or guardian cancels an agency contract, the athlete, parent, or guardian is not required to pay any consideration under the contract or return any consideration received from the athlete agent to influence the athlete to enter into the contract.
(1) The name and address of each individual represented by the agent.
(2) Each agency contract entered into by the agent.
(3) The direct costs incurred by the agent in the recruitment or solicitation of each student athlete to enter into an agency contract.
(b) Records described in subsection (a) of this section are open to inspection by the Secretary during normal business hours.
(1) Give materially false or misleading information or make a materially false promise or representation.
(2) Furnish anything of value to the athlete before the athlete enters into the contract.
(3) Furnish anything of value to an individual other than the athlete or another registered athlete agent.
(1) Initiate contact, directly or indirectly, with a student athlete or, if the athlete is a minor, a parent or guardian of the athlete to recruit or solicit the athlete, parent, or guardian to enter an agency contract unless registered under this chapter.
(2) Fail to create or retain or to permit inspection of the records required by § 5413 of this title.
(3) Fail to register when required by § 5404 of this title.
(6) Fail to notify a student athlete or, if the athlete is a minor, a parent or guardian of the athlete before the athlete, parent, or guardian signs an agency contract for a particular sport that the signing may make the athlete ineligible to participate as a student athlete in that sport.
An athlete agent who violates § 5414 of this title is guilty of a class A misdemeanor. For a first conviction of an offense under this section, an athlete agent is punishable by a fine of not less than $500 nor more than $1,000 and imprisonment for not more than 1 year. For a second or subsequent conviction of an offense under this section, an athlete agent is punishable by a fine of not less than $1,000 nor more than $2,000 and imprisonment for not more than 1 year.
(1) Is suspended or disqualified from participation in an interscholastic or intercollegiate sports event by or under the rules of a state or national federation or association that promotes or regulates interscholastic or intercollegiate sports.
(b) A plaintiff that prevails in an action under this section may recover damages, costs, and reasonable attorney’s fees. An athlete agent found liable under this section forfeits any right of payment for anything of benefit or value provided to the student athlete and shall refund any consideration paid to the agent by or on behalf of the athlete.
(c) A violation of this chapter is an unfair or deceptive merchandising practice for purposes of Subchapter II of Chapter 25 of Title 6.
The Secretary may assess a civil penalty against an athlete agent not to exceed $50,000 for a violation of this chapter.
§ 5418. Uniformity of application and construction.
In applying and construing this chapter, consideration must be given to the need to promote uniformity of the law with respect to its subject matter among states that enact laws similar to this chapter.
§ 5419. Relation to electronic signatures in Global and National Commerce Act.
This chapter modifies, limits, or supersedes the Electronic Signatures in Global and National Commerce Act, 15 U.S.C. Section 7001 et seq., but does not modify, limit, or supersede Section 101(c) of that act, 15 U.S.C. Section 7001(c), or authorize electronic delivery of any of the notices described in Section 103 (b) of that act, 15 U.S.C. Section 7003(b).
This Act adopts the Uniform Law Commission’s Revised Uniform Athlete Agents Act (“Revised Act”), revising Chapter 54, Title 24 of the Delaware Code, which is based on the Uniform Law Commission’s Uniform Athlete Agents Act (“Uniform Act”).
In the early 2000s, Delaware and 42 other states adopted the Uniform Act. Delaware’s version of the Uniform Act included a Board of Athlete Agents Examiners (“Board”), which was sunsetted by the Joint Legislative Oversight and Sunset Committee in 2012 and removed from the Delaware Code by Senate Bill 184 of the 146th General Assembly (78 Del. Laws, c. 376). In addition to removing provisions related to the Board, Senate Bill 184 also removed provisions requiring athlete agents doing business in Delaware to be registered and subject to administrative oversight.
In 2015, the Uniform Law Commission adopted the Revised Act to enhance protections for student athletes and educational institutions, create a uniform body of athlete agent registration information, and simplify the registration process.
The changes made to the Uniform Act by the Revised Act became necessary as athlete agent tactics have become more advanced and the industry has become more sophisticated. The need for the Revised Act is highlighted by a recent FBI investigation into athlete agent activities related to the college basketball programs at a number of Division I schools. The Revised Act provides additional safeguards for student athletes by requiring that athlete agents be licensed and that agency contracts contain specific notice provisions.
The Revised Act has been enacted by 11 states, with 3 of those enactments occurring this year, passed both chambers of the Minnesota legislature, and is currently being considered in the North Carolina legislature.

References: § 5403

§ 5404

§ 5405

§ 5406
 § 5405
 § 5414

§ 5407
 § 5406
 § 5406
 § 5405
 § 5406
 § 5406

§ 5409

§ 5410

§ 5411

§ 5412
 § 5413
 § 5404
 § 5414

§ 5418

§ 5419