[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4701 Introduced in House (IH)]
107th CONGRESS
2d Session
H. R. 4701
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
May 9, 2002
Mr. Gordon (for himself, Mr. Osborne, Mr. Dingell, Mr. Towns, Mr.
Stearns, Mr. John, and Mr. Clement) 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.
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--
(1) the term ``Commission'' means the Federal Trade
Commission;
(2) the term ``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
a contract, and does not include a spouse, parent, sibling,
grandparent, or guardian of such student athlete, or an
individual acting solely on behalf of a professional sports
team or professional sports organization;
(3) 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;
(4) 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;
(5) 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;
(6) the term ``agency contract'' means an agreement in
which a student athlete authorizes an agent to negotiate or
solicit on behalf of the student athlete a professional sports
contract or an endorsement contract;
(7) the term ``endorsement contract'' means an agreement
under which an individual 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;
(8) 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; and
(9) the term ``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.
SEC. 3. REGULATION OF UNFAIR AND DECEPTIVE ACTS AND PRACTICES IN
CONNECTION WITH THE CONTACT BETWEEN A SPORTS AGENT AND A
STUDENT ATHLETE.
(a) Conduct Prohibited.--It is unlawful for an 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 before the student athlete enters into an
agency contract;
(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 Agents to Student Athletes.--
(1) In general.-- In conjunction with the signing of an
agency contract, an agent shall provide to the student athlete
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 prior to the signing of
the agency contract.
(3) Required language.--The disclosure document must
contain, in close proximity to the signature of the student
athlete, a conspicuous notice in boldface type in capital
letters stating: ``WARNING TO STUDENT ATHLETE: IF YOU SIGN THIS
CONTRACT YOU MAY LOSE YOUR ELIGIBILITY TO COMPETE AS A STUDENT
ATHLETE IN YOUR SPORT.''.
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 person 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;
(C) obtain damage, restitution, or other
compensation on behalf of residents of the State; or
(D) obtain such other relief as the court may
consider to be appropriate.
(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--
(1) is an inhabitant; or
(2) may be found.
SEC. 6. NOTICE TO 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 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 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 agent for damages caused by such agent's
failure to provide notice as required in subsection (a).
(2) Damages.--Damages of an educational institution may
include losses and expenses incurred because, as a result of
the conduct of the agent, the educational institution was
injured by being 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) Liability.--Any liability of the agent or the former
student athlete under this section is several and not joint.
(5) 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. 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.
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