[Congressional Record Volume 148, Number 128 (Thursday, October 3, 2002)]
[Senate]
[Pages S9906-S9907]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. WYDEN:
  S. 3039. 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; to the Committee on Commerce, Science, and Transportation.
  Mr. WYDEN. Mr. President, I would like to say a few words about a 
bill I am introducing today, the Sports Agent Responsibility and Trust 
Act. The purpose of the bill is simple: to set some basic, uniform 
nationwide rules to prevent unscrupulous behavior by sports agents who 
court student athletes.
  Too often, unscrupulous sports agents prey upon young student 
athletes who are inexperienced, naive, or simply don't know all of the 
collegiate athletic eligibility rules. The agent sees the student 
athlete as a potentially lucrative future client, and wants to get the 
biggest headstart possible on other agents. So the agent tries to 
contact and sign up the student athlete as early as possible, and does 
whatever it takes to get the inside track.
  In some cases, the agent may attempt to lure the student athlete with 
grand promises. In some cases, the agent may offer flashy gifts. To 
make the offer more enticing, the agent may withhold crucial 
information about the impact on the student's eligibility to compete in 
college sports.
  A majority of States have enacted statutes to address unprincipled 
behavior by sports agents, but the standards vary from State to State 
and some States don't have any at all. The University of Oregon tells 
me that this creates a significant loophole. Specifically, Oregon has a 
State law, but it doesn't apply when a University of Oregon athlete 
goes home to another State for the summer and is contacted by an agent 
there. Every time that athlete crosses into another State, a different 
set of rules apply. And if one State's laws on the subject are 
particularly weak, that is where shady sports agents will try to 
contact their targets.
  That is why there ought to be a single, nationwide standard. The bill 
I am introducing today would establish a uniform baseline, enforceable 
by the Federal Trade Commission, that would supplement but not replace 
existing State laws. Specifically, the bill would make it an unfair and 
deceptive trade practice for a sports agent to entice a student athlete 
with false or misleading information or promises or with gifts to the 
student athlete or the athlete's friends or family. It would require a 
sports agent to provide the student athlete with a clear, standardized 
warning, in writing, that signing an agency contract could jeopardize 
the athlete's eligibility to participate in college sports. It would 
make it unlawful to pre-date or post-date agency contracts, and require 
both the agent and student athlete to promptly inform the athlete's 
university if they do enter into a contract.
  Representative Bart Gordon of Tennessee has spearheaded this 
legislation in the House, where the House Commerce Committee has held 
hearings and, most recently, unanimously approved the bill on September 
25. I applaud Congressman Gordon for his leadership on this issue, and 
I urge my Senate colleagues to join me in addressing this matter in the 
Senate.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 3039

       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

[[Page S9907]]

     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 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 education 
     institution, that the student athlete had entered into an 
     agency contract, and the athlete agency 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 others 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 
     the Congress that States should enact the provisions relating 
     to the registration of sports agents, the required form of 
     contract, the right of the student athletic 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.
                                 ______