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AN ACT
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relating to the regulation of athlete agents; providing
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administrative and criminal penalties.
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
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SECTION 1. Section 2051.001, Occupations Code, is amended
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by amending Subdivision (3) and adding Subdivision (5-a) to read as
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follows:
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(3) "Athlete agent" means an individual [a person]
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who:
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(A) for compensation, directly or indirectly
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recruits or solicits an athlete to enter into an agent contract, a
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financial services contract, or a professional sports services
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contract with that individual [person] or another person; or
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(B) for a fee, procures, offers, promises, or
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attempts to obtain employment for an athlete with a professional
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sports team.
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(5-a) "National professional sports association"
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means an organization that licenses or certifies athlete agents to
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represent athletes in a particular professional sport. The term
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includes the National Football League Players Association,
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National Basketball Players Association, Major League Baseball
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Players Association, National Hockey League Players' Association,
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and United States Soccer Federation.
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SECTION 2. Sections 2051.052(a) and (b), Occupations Code,
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are amended to read as follows:
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(a) The secretary of state shall [, at least once a year,]
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publish on the secretary of state's Internet website information
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that prescribes the compliance responsibilities of an institution
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of higher education under this chapter.
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(b) The secretary shall notify [mail, return receipt
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requested, a copy of the compliance responsibilities published
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under Subsection (a) to] the athletic director or other appropriate
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official of each institution of higher education of any change to
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the compliance responsibilities of the institution under this
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chapter.
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SECTION 3. Section 2051.101, Occupations Code, is amended
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by amending Subsections (a) and (b) and adding Subsections (a-1),
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(a-2), (d), and (e) to read as follows:
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(a) Except as provided by Subsection (b), an individual [a
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person] may not act as an athlete agent in this state or represent
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that the individual [person] is an athlete agent in this state
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unless the individual [person] holds a certificate of registration
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under this chapter as:
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(1) a professional athlete agent; or
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(2) a limited athlete agent.
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(a-1) An individual may not register as a professional
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athlete agent under this chapter unless the individual is certified
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as an agent by a national professional sports association.
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(a-2) An individual who is not certified as an agent by a
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national professional sports association may register only as a
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limited athlete agent. A limited athlete agent may only represent
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an athlete in a sport that does not have a national professional
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sports association.
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(b) Before the issuance of a certificate of registration
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under this chapter, an individual [a person] may act as an athlete
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agent in this state for all purposes except signing an agent
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contract, if:
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(1) an athlete or a person acting on behalf of the
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athlete initiates communication with the individual [person]; and
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(2) within seven days after the date of the initial act
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as an athlete agent, the individual [person] submits an application
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for registration under this chapter.
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(d) An agent contract with an athlete in a sport for which
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there is a national professional sports association is void if the
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contract is negotiated by an athlete agent holding a limited
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certificate of registration.
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(e) A person who is not an individual may not register as an
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athlete agent in this state.
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SECTION 4. Sections 2051.102(b) and (e), Occupations Code,
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are amended to read as follows:
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(b) An applicant must provide information required by the
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secretary of state, including:
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(1) the applicant's:
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(A) name;
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(B) principal business address;
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(C) business or occupation for the five years
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immediately preceding the date of application; and
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(D) formal training, practical experience, and
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educational background relating to the applicant's professional
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activities as an athlete agent;
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(2) the name, sport, and last known team for each
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person the applicant represented as an athlete agent during the
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five years immediately preceding the date of application;
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(3) whether the applicant or a person described by
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Subdivision (5) has been subject to any of the following:
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(A) a conviction of a crime that in this state is
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a Class A or Class B misdemeanor, a felony, or a crime of moral
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turpitude;
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(B) an administrative or a judicial
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determination finding the applicant or other person made a false,
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misleading, deceptive, or fraudulent representation;
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(C) a sanction or suspension related to
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occupational or professional conduct;
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(D) a denial of an application for a certificate
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of registration or license as an athlete agent; or
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(E) a denial, revocation, or suspension of a
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certificate of registration or license as an athlete agent;
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(4) whether the applicant or a person described by
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Subdivision (5) has engaged in conduct resulting in the imposition
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on an athlete or educational institution of a sanction, suspension,
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or declaration of ineligibility to participate in an
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interscholastic or intercollegiate athletic event; [and]
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(5) except as provided by Subsection (d), the name and
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address of each person, except a bona fide employee on salary, who
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is financially interested as a partner, associate, or profit sharer
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in the applicant's business; and
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(6) the name and address of each national professional
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sports association that has certified the applicant as an agent.
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(e) An individual [A person] seeking certification as an
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athlete agent under this chapter who holds a certificate of
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registration or license as an athlete agent in another state may
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submit a copy of the previous application and certificate or
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license instead of submitting the application required by this
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section. The secretary of state shall accept the application and
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the certificate or license from the other state as an application
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for registration in this state if the application to the other
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state:
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(1) was submitted to the other state not earlier than
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the 180th day before the date the application is submitted in this
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state and the applicant certifies that the information contained in
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the application is current;
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(2) contains information substantially similar to or
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more comprehensive than the information required by this section;
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and
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(3) was signed by the applicant under penalty of
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perjury.
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SECTION 5. Sections 2051.108(b) and (e), Occupations Code,
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are amended to read as follows:
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(b) A renewal application must include:
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(1) the name, [and] address, and telephone number of
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each athlete for whom the athlete agent is performing professional
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services for compensation on the date of the renewal application;
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(2) the name, [and] address, and telephone number of
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each athlete for whom the athlete agent has performed professional
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services for compensation during the three years immediately
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preceding the date of the renewal application but for whom the
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athlete agent is not performing professional services on the date
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of the renewal application; [and]
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(3) the name and address of each national professional
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sports association by which the athlete agent is currently
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certified; and
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(4) any other information prescribed by the secretary
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of state.
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(e) An individual [A person] who has submitted an
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application for renewal of registration or licensure as an athlete
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agent in another state may submit a copy of the application and
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certificate of registration or license from the other state instead
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of submitting the application required by this section. The
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secretary of state shall accept the application for renewal from
|
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the other state as an application for renewal under this section if
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the application to the other state:
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(1) was submitted to the other state not earlier than
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the 180th day before the date the renewal application is submitted
|
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in this state and the applicant certifies that the information
|
|
contained in the application is current;
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(2) contains information substantially similar to or
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more comprehensive than the information required by this section;
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and
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(3) was signed by the applicant under penalty of
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perjury.
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SECTION 6. Subchapter C, Chapter 2051, Occupations Code, is
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amended by adding Sections 2051.109 and 2051.110 to read as
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follows:
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Sec. 2051.109. CONTINUING NOTIFICATION REQUIREMENT. (a) A
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registered athlete agent shall notify the secretary of state in
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writing of the athlete agent's:
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(1) conviction of a crime that in this state is an
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offense other than a Class C misdemeanor; or
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(2) decertification as an agent by a national
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professional sports association that has become final by the
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conclusion of the appeal process provided by the association.
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(b) The athlete agent shall notify the secretary of state as
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required under this section not later than 30 days after the date of
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conviction or the date that the decertification becomes final.
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Sec. 2051.110. EFFECT OF DECERTIFICATION BY PROFESSIONAL
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ASSOCIATION. The secretary of state shall revoke the certificate
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of registration of an athlete agent decertified by a national
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professional sports association.
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SECTION 7. Section 2051.151, Occupations Code, is amended
|
|
by amending Subsections (a) and (b) and adding Subsection (a-1) to
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read as follows:
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(a) An athlete agent shall, before contacting an athlete or
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entering into an agent contract with an athlete in this state,
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deposit with the secretary of state a surety bond, in the amount of
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$50,000, payable to the state and conditioned on:
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(1) the athlete agent complying with this chapter;
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(2) the payment of any administrative penalty assessed
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under Subchapter J; and
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(3) the payment of any damages awarded to an
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institution of higher education or an athlete as a result of the
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athlete agent offering or providing a thing of value to an athlete
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or a family member of the athlete.
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(a-1) An athlete agent shall, before entering into a
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financial services contract with an athlete, deposit with the
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secretary of state a surety bond, in the amount of $100,000, payable
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to the state and conditioned on:
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(1) the athlete agent complying with this chapter;
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(2) the payment of money owed to an individual or group
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of individuals when the athlete agent or the athlete agent's
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|
representative or agent receives the money; and
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(3) the payment of damages to an athlete caused by the
|
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intentional misrepresentation, fraud, deceit, or unlawful or
|
|
negligent act or omission of the athlete agent or of the athlete
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agent's representative or employee while acting within the scope of
|
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the financial services contract.
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(b) An athlete agent shall maintain a bond deposited under
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Subsection (a) or (a-1) for not less than two years after the later
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of:
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(1) the date that the athlete agent ceases to provide
|
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financial services to an athlete; or
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|
(2) the date that the athlete agent's certificate of
|
|
registration expires or is revoked.
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SECTION 8. Section 2051.201, Occupations Code, is amended
|
|
to read as follows:
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Sec. 2051.201. CONTRACT FORM. (a) A registered athlete
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agent must use a form approved by the secretary of state for any
|
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agent contract or financial services contract.
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(b) The secretary of state shall by rule require that, to
|
|
the extent practicable, the form for an agent contract or financial
|
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services contract conforms to the contract form approved by the
|
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national professional sports association for the sport in which the
|
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athlete will be represented.
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SECTION 9. Section 2051.205(a), Occupations Code, is
|
|
amended to read as follows:
|
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(a) A registered athlete agent shall, not later than the
|
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10th [fifth] day after the date an athlete signs an agent contract
|
|
or financial services contract, file a copy of the contract with:
|
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(1) the secretary of state; and
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(2) if the athlete is a student at an institution of
|
|
higher education, the athletic director of the athlete's
|
|
institution.
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SECTION 10. Section 2051.351(a), Occupations Code, is
|
|
amended to read as follows:
|
|
(a) An athlete agent may not:
|
|
(1) publish or cause to be published:
|
|
(A) false, fraudulent, or misleading
|
|
information; or
|
|
(B) a false, fraudulent, or misleading:
|
|
(i) representation;
|
|
(ii) notice; or
|
|
(iii) advertisement;
|
|
(2) provide false information;
|
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(3) make a false promise or representation relating to
|
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employment;
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(4) divide fees with or receive compensation from:
|
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(A) a person exempt from registration under this
|
|
chapter under Section 2051.005; [or]
|
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(B) a professional sports league or franchise,
|
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including a representative or employee of the league or franchise;
|
|
or
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(C) an institution of higher education,
|
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including a representative or employee of the institution's
|
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athletics department;
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(5) enter into a written or oral agreement with an
|
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employee of an institution of higher education in which the athlete
|
|
agent offers a thing of value to the employee for the referral of
|
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clients by the employee;
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(6) before an athlete completes the athlete's last
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intercollegiate sports contest, offer a thing of value to the
|
|
athlete or an individual related to the athlete within the second
|
|
degree by affinity or consanguinity to induce the athlete to enter
|
|
into an agreement with the athlete agent in which the athlete agent
|
|
will represent the athlete;
|
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(7) before an athlete completes the athlete's last
|
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intercollegiate sports contest, furnish a thing of value to the
|
|
athlete or an individual related to the athlete within the second
|
|
degree by affinity or consanguinity;
|
|
(8) [(7)] except as provided by this chapter, before
|
|
an athlete completes the athlete's last intercollegiate sports
|
|
contest:
|
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(A) directly contact the athlete; or
|
|
(B) enter into an oral or written agreement with
|
|
the athlete for the athlete agent to represent the athlete;
|
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(9) [(8)] furnish anything of value to any person
|
|
other than the athlete or another registered athlete agent to
|
|
induce an athlete to enter into an agreement with the athlete agent;
|
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(10) [(9)] initiate any contact with an athlete,
|
|
except as authorized by this chapter;
|
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(11) [(10)] fail to retain or permit inspection of the
|
|
records required to be retained by Section 2051.352;
|
|
(12) [(11)] predate or postdate an agent contract;
|
|
[or]
|
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(13) [(12)] fail to notify an athlete before the
|
|
athlete signs an agent contract that the signing may make the
|
|
athlete ineligible to participate in intercollegiate sports; or
|
|
(14) commit an act or cause a person to commit an act
|
|
on the athlete agent's behalf that causes an athlete to violate a
|
|
rule of the national association for the promotion and regulation
|
|
of intercollegiate athletics of which the athlete's institution of
|
|
higher education is a member.
|
|
SECTION 11. Section 2051.451(b), Occupations Code, is
|
|
amended to read as follows:
|
|
(b) The secretary shall determine the amount of a penalty
|
|
assessed under Subsection (a), except that the amount may not
|
|
exceed:
|
|
(1) $50,000 for a violation of Section 2051.351(a)(7)
|
|
or (14); or
|
|
(2) $25,000 for any other violation.
|
|
SECTION 12. Subchapter J, Chapter 2051, Occupations Code,
|
|
is amended by adding Section 2051.457 to read as follows:
|
|
Sec. 2051.457. FAILURE TO PAY ADMINISTRATIVE PENALTY. (a)
|
|
If an athlete agent fails to pay the administrative penalty and does
|
|
not request a hearing as provided by Section 2051.453, the
|
|
secretary of state may revoke the agent's certificate of
|
|
registration, refuse to renew the agent's certificate of
|
|
registration, or refuse to issue a certificate of registration to
|
|
the agent.
|
|
(b) If, after a hearing, an athlete agent fails to pay the
|
|
administrative penalty as required by Section 2051.454, the
|
|
secretary of state may revoke the agent's certificate of
|
|
registration, refuse to renew the agent's certificate of
|
|
registration, or refuse to issue a certificate of registration to
|
|
the agent.
|
|
SECTION 13. Section 2051.501, Occupations Code, is amended
|
|
by amending Subsection (b) and adding Subsection (c) to read as
|
|
follows:
|
|
(b) Except as provided by Subsection (c), an [An] offense
|
|
under this section is a Class A misdemeanor.
|
|
(c) An offense under this section committed by an athlete
|
|
agent who intentionally or knowingly violates Section
|
|
2051.351(a)(7) or (14) is a third degree felony.
|
|
SECTION 14. Subchapter K, Chapter 2051, Occupations Code,
|
|
is amended by adding Section 2051.502 to read as follows:
|
|
Sec. 2051.502. NOTICE OF CRIMINAL OFFENSE. The secretary
|
|
of state shall send notice of an athlete agent's conviction of an
|
|
offense under Section 2051.501 to each national professional sports
|
|
association that has certified the agent.
|
|
SECTION 15. The heading to Subchapter L, Chapter 2051,
|
|
Occupations Code, is amended to read as follows:
|
|
SUBCHAPTER L. CIVIL LIABILITY [SUIT BY INSTITUTION OF HIGHER
|
|
EDUCATION]
|
|
SECTION 16. Section 2051.551, Occupations Code, is amended
|
|
by amending Subsections (a), (b), and (c) and adding Subsection
|
|
(a-1) to read as follows:
|
|
(a) An institution of higher education adversely affected
|
|
by an athlete agent's [or former athlete's] violation of this
|
|
chapter may file suit against the athlete agent [or former athlete]
|
|
for damages.
|
|
(a-1) An athlete adversely affected by an athlete agent's
|
|
violation of Section 2051.351(a)(7) or (14) may file suit against
|
|
the athlete agent for damages.
|
|
(b) A cause of action under Subsection (a) [this section]
|
|
does not accrue until the educational institution discovers or by
|
|
the exercise of reasonable diligence would have discovered the
|
|
violation by the athlete agent [or former athlete].
|
|
(c) Any liability of the athlete agent [or the former
|
|
athlete] under this section is several and not joint.
|
|
SECTION 17. Section 2051.552, Occupations Code, is amended
|
|
to read as follows:
|
|
Sec. 2051.552. ADVERSELY AFFECTED. (a) An institution of
|
|
higher education is adversely affected by an athlete agent's
|
|
violation of this chapter if:
|
|
(1) the athlete agent's violation causes a national
|
|
association for the promotion and regulation of intercollegiate
|
|
athletics to disqualify or suspend the institution from
|
|
participating in intercollegiate sports contests; and
|
|
(2) the disqualification or suspension of the
|
|
institution causes the institution to:
|
|
(A) lose revenue from media coverage of sports
|
|
contests;
|
|
(B) lose the right to grant athletic scholarships
|
|
in the sport in which the institution is disqualified or suspended;
|
|
(C) lose the right to recruit athletes; or
|
|
(D) otherwise suffer an adverse financial
|
|
impact.
|
|
(b) An athlete is adversely affected by an athlete agent's
|
|
violation of Section 2051.351(a)(7) or (14) if:
|
|
(1) the athlete agent's violation causes a national
|
|
association for the promotion and regulation of intercollegiate
|
|
athletics to disqualify or suspend the athlete from participating
|
|
in intercollegiate sports contests; and
|
|
(2) the disqualification or suspension of the athlete
|
|
causes the athlete to suffer an adverse financial impact.
|
|
SECTION 18. Section 2051.553, Occupations Code, is amended
|
|
to read as follows:
|
|
Sec. 2051.553. RECOVERY. A plaintiff [An institution of
|
|
higher education] that prevails in a civil suit filed under Section
|
|
2051.551 may recover:
|
|
(1) actual damages;
|
|
(2) exemplary damages;
|
|
(3) court costs; and
|
|
(4) reasonable attorney's fees.
|
|
SECTION 19. The following sections of the Occupations Code
|
|
are repealed:
|
|
(1) Section 2051.103;
|
|
(2) Section 2051.104; and
|
|
(3) Section 2051.153.
|
|
SECTION 20. (a) A registration under Chapter 2051,
|
|
Occupations Code, in effect on the effective date of this Act
|
|
continues in effect under the former law until it expires or is
|
|
revoked, and the former law is continued in effect for that purpose.
|
|
(b) An individual who submits an application required by
|
|
Chapter 2051, Occupations Code, that is pending on the effective
|
|
date of this Act must resubmit an application as required by Chapter
|
|
2051, Occupations Code, as amended by this Act.
|
|
(c) The change in law made by this Act applies only to an
|
|
offense committed on or after the effective date of this Act. An
|
|
offense committed before the effective date of this Act is governed
|
|
by the law in effect on the date the offense was committed, and the
|
|
former law is continued in effect for that purpose. For purposes of
|
|
this section, an offense was committed before the effective date of
|
|
this Act if any element of the offense occurred before that date.
|
|
(d) Not later than January 1, 2012, the secretary of state
|
|
shall:
|
|
(1) by letter notify each institution of higher
|
|
education that would have received a copy of compliance
|
|
responsibilities by mail from the secretary under former Section
|
|
2051.052, Occupations Code, of the changes in law made by this Act;
|
|
and
|
|
(2) post on the secretary's Internet website the
|
|
compliance responsibilities of institutions of higher education
|
|
under Chapter 2051, Occupations Code, as required by Section
|
|
2051.052, Occupations Code, as amended by this Act.
|
|
SECTION 21. This Act takes effect September 1, 2011.
|
|
|
|
______________________________
|
______________________________
|
|
President of the Senate
|
Speaker of the House
|
|
|
|
I certify that H.B. No. 1123 was passed by the House on April
|
|
26, 2011, by the following vote: Yeas 114, Nays 34, 2 present, not
|
|
voting; and that the House concurred in Senate amendments to H.B.
|
|
No. 1123 on May 18, 2011, by the following vote: Yeas 140, Nays 0,
|
|
3 present, not voting.
|
|
|
|
______________________________
|
|
Chief Clerk of the House
|
|
|
I certify that H.B. No. 1123 was passed by the Senate, with
|
|
amendments, on May 16, 2011, by the following vote: Yeas 29, Nays
|
|
2.
|
|
|
|
______________________________
|
|
Secretary of the Senate
|
|
APPROVED: __________________
|
|
Date
|
|
|
|
__________________
|
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Governor
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