[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 3039 Introduced in Senate (IS)]







107th CONGRESS
  2d Session
                                S. 3039

 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 SENATE OF THE UNITED STATES

                            October 3, 2002

   Mr. Wyden introduced the following bill; which was read twice and 
   referred to the Committee on Commerce, Science, and Transportation

_______________________________________________________________________

                                 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, 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, 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;
            (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 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;
                    (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. 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 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. 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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