[Congressional Record Volume 149, Number 81 (Wednesday, June 4, 2003)]
[House]
[Pages H4895-H4899]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SPORTS AGENT RESPONSIBILITY AND TRUST ACT
Mr. STEARNS. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 361) 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, as amended.
The Clerk read as follows:
H.R. 361
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, 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 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, 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
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; 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 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.
[[Page H4896]]
(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 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. 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.
SEC. 8. 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.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Florida (Mr. Stearns) and the gentleman from Tennessee (Mr. Gordon)
each will control 20 minutes.
The Chair recognizes the gentleman from Florida (Mr. Stearns).
General Leave
Mr. STEARNS. Mr. Speaker, I ask unanimous consent that all Members
may have 5 legislative days within which to revise and extend their
remarks and include extraneous material on H.R. 361, as amended.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Florida?
There was no objection.
Mr. STEARNS. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise in support of H.R. 361, the Sports Agent Trust
and Responsibility Act.
Mr. Speaker, this legislation is sponsored by my friend and colleague
on the Committee on Energy and Commerce, the gentleman from Tennessee
(Mr. Gordon), for whom this has been a long-standing concern.
Additionally, our colleague, the gentleman from Nebraska (Mr. Osborne),
also has firsthand experience in dealing with the problem in this bill
in his prior career and is a major cosponsor.
The Subcommittee on Commerce, Trade and Consumer Protection held
hearings on this legislation last year and heard from many experts
regarding the problems facing promising student athletes in this
country. My colleagues and I on the Committee on Energy and Commerce
agree there is a problem and that this bill, H.R. 361, is a responsible
and necessary legislative solution. We passed the legislation out of
our committee unanimously in the 107th Congress.
For my colleagues who may be unaware of the nature of the problem,
let me briefly explain this afternoon. I am sure the gentleman from
Tennessee (Mr. Gordon) and the gentleman from Nebraska (Mr. Osborne)
will also amplify my comments on how destructive this behavior can be
to the student athletes, their families, and to the schools.
I share their concern that student athletes are often targeted by
unscrupulous agents who suffer little or no consequence for their
continued deception. In today's multibillion dollar professional sports
industry, collegiate athletes with even the slightest potential of
becoming a highly paid professional athlete often find themselves in
the cross hairs of sports agents. Because the odds of an athlete making
it to the professional ranks is very, very low, the financial reward
for those who do make it can be extraordinary, and the financial
windfall to an agent representing the athlete is highly significant.
For an agent who may not be an established name in the business,
success for this agent may be dependent upon either signing a superstar
or playing the simple percentages and representing multiple promising
athletes in hopes of at least one making it to the professional
leagues.
Unfortunately, Mr. Speaker, the agents looking to make a quick buck
are often the same ones who do not have the athlete's best interest in
mind. While the reputable agents respect the athletes, and, of course,
they follow the rules, the unscrupulous agents have been reported to
take extreme measures to sign the athlete with little regard for the
consequences to the athlete. Why do they do this? For those agents
lacking any integrity, the financial payout can be very, very large;
and there are few, if any, consequences to dissuade them.
While we do not currently have a Federal remedy to address these
problems, many of our States do. They have recognized the problem and
have varying State laws to address the behavior of these sports agents.
Because the inconsistency of the State laws has prevented meaningful
enforcement, the States recently approved a uniform State athlete agent
act in the Year 2000. More than a dozen States have since enacted the
law, and it is working its way through many other State legislatures.
As promising as this sounds, it is a long process that does not
guarantee that all of the States will adopt it. While this may not
sound significant to my colleagues, the law can only be completely
effective if it is enforced uniformly in every State in this Nation.
The States deserve credit for addressing this problem. Yet, Mr.
Speaker, the reality is that there is still a gaping hole that this
legislation will finally fill. Not only does this legislation provide
the Federal Trade Commission with the authority to enforce the act, but
it also provides the States with the authority to bring civil action
against violators in the Federal courts. Additionally, the legislation
requires a new disclosure to the student athlete, and, finally, places
a measure of responsibility on the agent himself so that there should
be no misunderstanding regarding the signing of a contract.
Mr. Speaker, this legislation provides a Federal remedy to a problem
that many of us did not know about, but it is no less deserving of a
cure this afternoon. H.R. 361 provides a measured response. I urge my
colleagues to support it.
Mr. Speaker, I reserve the balance of my time.
Mr. GORDON. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I intend to make a few brief remarks in support of H.R.
361, the Sports Agent Responsibility and Trust Act, or SPARTA. The
combination of a patchwork of weak State laws and the lure of big money
has made student athletes an irresistible target for certain
unscrupulous sports agents willing to break the rules concerning
amateur athletics. Such agents use any means necessary to convince a
student athlete who has even a remote chance of playing professional
sports to drop out of school and go pro early, including deceptive
information about their chances in the draft, secret payments to their
friends and families, lavish gifts, and sometimes even blackmail.
This kind of elicit behavior can quickly cost student athletes their
scholarships and eligibility to play college sports. The school may
face substantial fines and other economic losses.
The only person not held accountable is the sports agent.
Unfortunately, under the current patchwork of State sports agent laws,
the agents face little or no consequences for damages they have caused.
[[Page H4897]]
H.R. 361 addresses this problem head on by providing baseline Federal
remedies to protect student athletes and educational institutions,
particularly in those States with no existing law regulating sports
agent conduct.
Specifically, the bill would make a number of unethical recruiting
tactics unfair and deceptive trade practices under the Federal Trade
Act. This includes making false or misleading promises or
representations, providing anything of value to the student athletes or
anyone associated with the athlete in order to entice them into an
agency contract, failing to tell the student signing the contract that
it will end their college eligibility, and pre-dating or post-dating
contracts.
The pressures on student athletes and colleges are tremendous. We
have a responsibility to educate our student athletes and protect them
from unscrupulous sports agents who try to trick or trap them into
dropping out of school. This legislation will send a strong signal to
the rotten apple agents that they will be held accountable for
unethical recruiting practices. I urge all Members to support this
bill.
Finally, Mr. Speaker, let me give my sincere thanks to the gentleman
from the State and University of Nebraska (Mr. Osborne). The gentleman
has brought a unique perspective to this bill and persuasiveness that
has helped us get this passed.
Also I want to thank the subcommittee chairman from the Committee on
Energy and Commerce, the gentleman from Florida (Mr. Stearns), for
expediting this procedure and helping us move through his committee, as
well as the ranking member, the gentleman from New York (Mr. Towns).
I also want to thank the gentleman from Louisiana (Chairman Tauzin)
and the ranking member, the gentleman from Michigan (Mr. Dingell), for
their help. Certainly with joint jurisdiction with the Committee on the
Judiciary, the gentleman from Wisconsin (Chairman Sensenbrenner) should
be thanked for his help; as well as the subcommittee chairman, the
gentleman from Utah (Mr. Cannon); the ranking member, the gentleman
from North Carolina (Mr. Watt); and the ranking member, the gentleman
from Michigan (Mr. Conyers).
Finally, let me thank a diligent member of my staff, Dana
Lichtenberg, who has done an outstanding job with her tenaciousness in
moving this bill forward, and also a friend of mine from home, Ken
Shipp. Coach Shipp came by my office a few years ago on the Square in
Murfreesboro and told me about this problem; and, like so many things,
I get my best advice from home, and so I thank Coach Shipp for his
advice.
Mr. Speaker, I reserve the balance of my time.
Mr. STEARNS. Mr. Speaker, I yield 4 minutes to the gentleman from
Wisconsin (Mr. Sensenbrenner), the distinguished chairman of the
Committee on the Judiciary.
Mr. SENSENBRENNER. Mr. Speaker, I rise in support of H.R. 361. This
legislation, which is known as the SPARTA Act, is important for the
sports industry, which in recent years has become ever more just so
that, an industry. The thrill of pure athletic accomplishment has been
overwhelmed as a motivating incentive by the desire for economic gain.
While understandable, we cannot allow this desire to lead to the abuse
of individuals, the public and private universities and colleges, and
the system itself.
We as Americans love sports. Who does not enjoy sitting back on a
relaxing weekend watching their favorite college and professional
sports teams performing? In Wisconsin, every Sunday during the fall we
watch the Green Bay Packers with the intensity and caring of a mother
bear watching her cubs. We have dedicated a month to an American
tradition called March Madness and watch some of the most athletically
gifted students in the Nation compete in the drama which can have only
one victor at the day's end.
{time} 1430
However, even with all this talent, only 1 percent of the NCAA
athletes make it to the professional level, and then often only in a
back-up role. For those who do make it to the big leagues, the rewards
are great.
Athlete agents want to reap this reward, as well. As a result, some
agents deploy questionable tactics in a generally unregulated field.
They send runners to befriend these athletes and give them money and
other enticements, and support the friends and family of the athlete
with money and gifts.
This is done in consideration of an agreement for future
representation, which is illegal by NCAA standards and causes the
athlete to lose their collegiate eligibility. In many States, the
penalty to the agent is nothing.
Mr. Speaker, the Uniform Athlete Agents Act, which addresses this
situation, has been adopted by over 20 States. However, given the
nature of intercollegiate sports, State boundaries are crossed
constantly. Agents can forum-shop by waiting in a State that has not
adopted the UAAA and wait for the visiting team to arrive before
approaching college stars.
Because of this unique situation, this Federal solution is necessary.
Geographic loopholes must be closed so that agents will comply with the
modest guidelines set forth for recruitment by the NCAA.
Mr. Speaker, this bill deserves the full support of the House, and I
urge its adoption.
Mr. GORDON. Mr. Speaker, I yield 2 minutes to the gentlewoman from
Texas (Ms. Jackson-Lee).
(Ms. JACKSON-LEE of Texas asked and was given permission to revise
and extend her remarks.)
Ms. JACKSON-LEE of Texas. Mr. Speaker, let me first of all give much
applause to the gentleman from Tennessee (Mr. Gordon) for a very
thoughtful, but very important legislative initiative. I am very proud
as a member of the Committee on the Judiciary to have had an
opportunity to have had oversight and jurisdiction over this
legislation. I am also grateful for the response of the gentleman from
Florida (Chairman Stearns) in bringing this legislation to the floor.
Let me speak from a personal perspective, I guess, because I have an
11th grader whose almost every waking moment deals with what is
happening on the basketball court. I work very hard as a parent to
ensure that his academics are safe and secure.
We realize that America loves sports, young people love sports, but
particularly in rural and inner-city communities many of our young
people find their way out of poverty by seeking opportunities in a
sports arena. I remember being with a family just a few weeks ago who
was praying that their young man would be able to get into a certain
college, and they were prayerful that his future would be great in some
sports arena.
So this bill, I say to the gentleman from Tennessee (Mr. Gordon), is
extremely important because what it does is it provides an even playing
field for the innocent youngster, the young person whose parents are
hopeful that their lives will be different than the lives of their
parents, struggling every day to work and provide resources for the
family.
The unscrupulous will be charged and the Federal Government, which I
believe should be the major problem-solver of this Nation, will be
right in the midst. We will not blame and see the headlines of the
young people who may have gotten a car or may have been somewhere where
they should not have been, while the other guy, who continues to have
his fabulous rings and fancy cars, the sports agent, of which I do not
label all of them, goes without penalty.
Let me give a compliment to many sports agents that I know who work
very hard to speak accurately to the families, and work with the young
people. But I believe this legislation will set a litmus test to ensure
that we balance these hopes and dreams and aspirations, these goals for
these young people, and the right thing to do.
So I applaud this legislation and I rise enthusiastically to support
it. I know it will make life better for those who are trying to make
life better for themselves.
Mr. STEARNS. Mr. Speaker, I yield 5 minutes to the gentleman from
Nebraska (Mr. Osborne), who has actually run premier athletic programs
and has run multiple national college football championships at the
University of Nebraska. If anyone knows about this problem of
unscrupulous sports agents, the gentleman from Nebraska would know
that.
[[Page H4898]]
Mr. OSBORNE. Mr. Speaker, I thank the chairman for yielding time to
me, and I appreciate his help very much.
I would also like to thank the gentleman from Tennessee (Mr. Gordon)
and his staff for all the work they have put in; the gentleman from
Louisiana (Chairman Tauzin) and the gentleman from Wisconsin (Chairman
Sensenbrenner) and their staffs; and also Lisa Knott from my staff.
Many people have cooperated.
As has been mentioned, currently only 20 States have comprehensive
laws regulating sports agents; 17 States have no laws at all. My State,
Nebraska, is one of those. Thirteen States have a patchwork of laws
governing sports agents.
Here is the problem. I will use primarily a football illustration,
because that is what I understand the best. As of April, 2002, the
National Football League Players Association reported 1,200 certified
agents to represent NFL players. The problem is that of those 1,200,
only 400 had clients, so we have 800 people who say they are agents and
they have nobody to represent.
There are also several hundred other agents who are not even
certified by the National Football League who also call themselves
agents. So if they call themselves agents and do not have a client,
they are pretty desperate. What these guys do is, they will go after
undergraduates, and they will sometimes be very unscrupulous in doing
so. There are some good agents, but many are not. So here are some of
the things that happen.
They will offer an undergraduate athlete cars, clothes, cash,
sometimes even drugs, to sign an agency contract. Of course,
immediately this renders the student athlete ineligible.
They promise an athlete that he will be drafted higher. The National
Football League tells them they will be drafted in the fourth round,
and the agent says, that is a lot of baloney. I will get you a personal
trainer, I will get you a nutritionist, we will go to California, we
will work hard, you are going to get bigger, faster, stronger, you are
going to be a first-round pick, and you are going to make $6 million
just to sign your name.
Of course, that is totally untrue. They cannot get a player drafted
higher because of the agent's activities. So the player drops out of
school at that point, and he gets a nutritionist, and nothing happens.
They use runners, as has been mentioned. These are usually former
players. These are student athletes in the school. Sometimes they are
simply students in the school. The player has no idea that he is
dealing with somebody who represents an agent. So the runner takes him
out to dinner and gets him obligated.
They sometimes threaten athletes with physical harm.
Lastly, they often tell a student athlete they will predate or
postdate a contract so they will not jeopardize their eligibility,
which is absolutely untrue. The minute they verbally agree to a
contract or sign it, no matter whether it is predated or postdated,
they are ineligible. These are some of the problems.
With these problems in mind, the gentleman from Tennessee (Mr.
Gordon) and I have introduced H.R. 361, which has been referred to
previously as SPARTA. It makes it illegal for sports agents to entice
student athletes with false or misleading information, promises, or
representations.
SPARTA requires the agent to inform the undergraduate athlete and his
school in writing that the player has signed an agency contract and is
ineligible. What often happens is a school does not know that they have
got a guy out there playing who is ineligible, that he has already
signed a contract, so this forces the agent to let the school know in
writing that he has a player under contract and that player is
ineligible.
Under SPARTA, sports agents who engage in illegal recruiting will be
fined up to $11,000 per incident per day. The Committee on Energy and
Commerce passed this legislation by voice vote. The Committee on the
Judiciary passed SPARTA by voice vote. So this legislation is
bipartisan and it is noncontroversial.
I urge my colleagues to support this legislation. I do not know any
college athletic director, coach, reputable athlete, or most reputable
agents themselves who would oppose this legislation.
Again, I want to thank my colleague, the gentleman from Tennessee
(Mr. Gordon), all those involved, and urge passage of this, what I
think is a very important Federal backstop, very important legislation.
Mr. GORDON. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, let me once again thank the gentleman from Nebraska (Mr.
Osborne) for his efforts. To just elaborate a little on his comments,
this legislation has been endorsed by virtually every organization that
is affected in the country, by the American Football Coaching
Association, the Black Coaches Association, the Knight Foundation
Commission on Intercollegiate Athletics, the National Association of
Basketball Coaches, the National Association of College Directors of
Athletics, the NCAA, the Junior College Athletic Association, the Big
12, the Big East, the Pac-10, the Sunbelt Conference, and coaches and
athletic departments all across the country.
Mr. Speaker, I reserve the balance of my time.
Mr. STEARNS. Mr. Speaker, I yield 4 minutes to the gentleman from
Utah (Mr. Cannon).
Mr. CANNON. Mr. Speaker, I rise in support of H.R. 361.
This bill is important for all of the reasons that have already been
discussed. An athletic agent is in a unique position in that while he
stands to gain from his relationship with the student athlete, that
student athlete client shoulders much of the risk when rules are not
followed.
H.R. 361 evens the responsibilities and will help to act as a
deterrent for agents who would otherwise not play by the rules of the
game.
H.R. 361 will prohibit an athlete agent from recruiting or soliciting
a student athlete to enter into an agency contract through the use of
false or misleading information, or by the provision of anything of
value to the athlete or those associated with him.
In addition, the bill would require the contract between the agent
and the student athlete to have a conspicuous notice in bold typeface
stating that the agreement for agent representation may result in the
termination of the student athlete's eligibility to compete in
collegiate sports.
Violations of this act may be addressed by the Federal Trade
Commission or the attorney general of the State of occurrence. The FTC
may pursue an action as an unfair or deceptive act or practice. States
are authorized to commence civil actions against the agent who is in
violation of this act and seek remedies, including enjoining the
practice, enforcing compliance, obtaining damages, restitution, or
other compensation on behalf of the State's residents.
In addition, this bill allows for educational institutions to seek
damages in the event that a university athletic director is not
informed of a new contractual relationship within 72 hours, either of
the signing or the first event that the athlete is eligible to
participate in.
Failure to so instruct may allow the ineligible athlete to compete,
thus causing exposure for the institution to be liable or penalized
under sanctions, fines, forfeitures, or disqualifications. The bill
allows the institution to file suit against the agent for his failure
to disclose, and to seek compensation for those damages which the
educational institution suffered.
At the subcommittee, with the support of the gentleman from Tennessee
(Mr. Gordon) and the gentleman from Nebraska (Mr. Osborne), working
with the minority and with the distinguished ranking subcommittee
member, the gentleman from North Carolina (Mr. Watt), I offered an
amendment in the nature of a substitute which made this bill better.
The amendment clarified several portions of the bill to make it clear
what behavior will and will not be tolerated. The amendment clarified
that the only representation to be prohibited is that of an agent, and
should not otherwise prohibit or discourage an athlete from seeking
legal representation.
Further, the amendment included a specific ban on the giving of loans
or acting as guarantor or co-guarantor for anything of value to the
athlete or those associated with those athletes. This subterfuge is
currently a common way of skirting NCAA rules.
[[Page H4899]]
Finally, the amendment clarified that nothing in this bill was meant
to prohibit an individual from seeking Federal, State, or equity
remedies under existing law, thus strengthening the student athlete's
right to pursue a claim under existing contractual law.
Mr. Speaker, I join with my colleagues in urging the House to give
its full support to the adoption of H.R. 361.
Mr. GORDON. Mr. Speaker, I yield myself the balance of my time.
Finally, Mr. Speaker, let me just say that this bill does not
penalize the many legitimate sports agents. This bill does not stop any
athlete from, with full information, going pro. Also, this bill does
not set up a national sports police.
What it does is it deputizes the various States' attorneys general to
follow up on the deceptive acts, and deal with these incidents or these
problems on a local basis.
Once again, my thanks to all the Members that have made this bill
possible to come to the floor and possibly pass today.
Mr. Speaker, I yield back the balance of my time.
Mr. STEARNS. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, just in conclusion, maybe just a quick history on this
bill.
The gentleman from Tennessee (Mr. Gordon) dropped the bill in the
107th Congress. We had a hearing out of the subcommittee that I chair,
the Subcommittee on Commerce, Trade, and Consumer Protection. We had
the NCAA and we had lots of witnesses. Everybody endorsed this bill.
I think for those who are worried that this is a Federal mandate, it
is basically a bill to give a little bit more support to the States,
particularly those States, perhaps in Nebraska, where they do not have
any law, and give those State attorneys general the opportunity to
prosecute those unscrupulous sports agents.
I think the gentleman from Tennessee (Mr. Gordon) is to be commended
for his hard work on this over a long period of time, and for pushing
it forward.
Also, I want to thank the gentleman from Louisiana (Mr. Tauzin) for
allowing a hearing on this. Eventually we are here this afternoon. I
wish we could have passed this in the 107th Congress, but we are here
in the 108th Congress, and hopefully we will get this bill passed.
Again, I commend all those who have been involved.
Mr. DINGELL. Mr. Speaker, I am a proud cosponsor of H.R. 361, the
``Sports Agent Responsibility and Trust Act'' (SPARTA). This
legislation will hold unscrupulous sports agents responsible for their
actions by authorizing the Federal Trade Commission and State attorneys
general to enforce common sense protections for amateur athletes. I
commend the chief sponsor of this bill, the gentleman from Tennessee,
for his hard work on this bill.
This legislation empowers students with the ability to decide when
and where they become professionals and protects them from the
underhanded tactics that have become all too common in this field.
Under this legislation, student athletes can no longer be tricked into
signaling contracts through the deception or bribery of a sports agent.
And agents must clearly disclose to students that they will no longer
be amateurs if they sign an agency contract, before they sign the
contract.
SPARTA enjoys wide support in the academic community and has been
endorsed by the NCAA and over 30 colleges and universities, including
the University of Michigan. I urge my colleagues to support this
legislation and send a strong message to the unprincipled sports agents
who prey on our youth.
Mr. STEARNS. Mr. Speaker, I yield back the balance of my time.
{time} 1445
The SPEAKER pro tempore (Mr. Bass). The question is on the motion
offered by the gentleman from Florida (Mr. Stearns) that the House
suspend the rules and pass the bill, H.R. 361, as amended.
The question was taken; and (two-thirds having voted in favor
thereof) the rules were suspended and the bill, as amended, was passed.
A motion to reconsider was laid on the table.
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