Bill Text: FL H0873 | 2012 | Regular Session | Introduced

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Bill Title: Athlete Agents

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2012-03-09 - Died in Business and Consumer Affairs Subcommittee [H0873 Detail]

Download: Florida-2012-H0873-Introduced.html

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HB 873

1	A bill to be entitled
2	An act relating to athlete agents; amending s.
3	468.452, F.S.; revising the definition for the term
4	"athlete agent"; defining the term "national
5	professional sports association"; amending s. 468.453,
6	F.S.; requiring that an individual who practices as an
7	athlete agent be licensed as a professional athlete
8	agent or limited athlete agent by the Department of
9	Business and Professional Regulation; prohibiting a
10	person who is not an individual from practicing as an
11	athlete agent; requiring that a professional athlete
12	agent be certified as an agent by a national
13	professional sports association; providing that an
14	individual who is not certified as an agent by a
15	national professional sports association may be
16	licensed only as a limited athlete agent; requiring
17	that a licensed athlete agent notify the department in
18	writing of the agent's conviction of a crime or
19	decertification as an agent by a national professional
20	sports association within a specified period;
21	requiring that the department revoke the license of an
22	athlete agent who has been convicted of a crime or
23	decertified by a national professional sports
24	association; amending s. 468.454, F.S.; providing that
25	an agent contract may conform to the form approved by
26	a national professional sports association for the
27	sport in which the student athlete will be represented
28	under certain circumstances; providing that an agent
29	contract with a student athlete in a sport for which
30	there is a national professional sports association is
31	void if negotiated by an agent holding a limited
32	license; creating s. 468.4542, F.S.; requiring that an
33	athlete agent deposit a surety bond with the
34	department before contacting an athlete or entering
35	into an agent contract or contract for financial
36	services with a student athlete under certain
37	conditions; requiring that the athlete agent maintain
38	a bond for at least 2 years after the athlete agent
39	ceases providing financial services or after the
40	athlete agent's license expires or is revoked;
41	amending s. 468.456, F.S.; prohibiting an athlete
42	agent from offering or furnishing anything of value to
43	a student athlete or an individual related to the
44	student athlete before the student completes his or
45	her last intercollegiate sports contest; prohibiting
46	an athlete agent from committing an act or causing a
47	person to commit an act on the agent's behalf which
48	causes a student athlete to violate a rule of a
49	national professional sports association under certain
50	circumstances; providing for an increase in
51	administrative penalties for certain violations;
52	authorizing the department to revoke, refuse to renew,
53	or refuse to issue an athlete agent's license if the
54	agent fails to pay an administrative penalty; amending
55	s. 468.45615, F.S.; providing that an athlete agent
56	who offers or furnishes anything of value to a student
57	athlete or an individual related to the student
58	athlete before the student completes his or her last
59	intercollegiate sports contest commits a felony of the
60	third degree; requiring that the department send a
61	notice of an athlete agent's conviction of an offense
62	to each national professional sports association that
63	has certified the agent; amending s. 468.4562, F.S.;
64	authorizing a student athlete to sue for damages under
65	certain circumstances; creating s. 468.45625, F.S.;
66	requiring that the department publish on its Internet
67	website information prescribing the responsibilities
68	of colleges and universities under part IX, ch. 468,
69	F.S.; requiring that the department notify the
70	athletic director or other appropriate official of
71	each college or university of any changes to the
72	responsibilities; amending s. 468.4565, F.S.; revising
73	provisions relating to an athlete agent's financial
74	and business records; requiring that the records
75	contain the telephone number of each individual
76	represented by the athlete agent and the name and
77	address of each national professional sports
78	association that certifies the athlete agent;
79	providing an effective date.
80
81	Be It Enacted by the Legislature of the State of Florida:
82
83	Section 1.  Section 468.452, Florida Statutes, is amended
84	to read:
85	468.452  Definitions.-For purposes of this part, the term:
86	(1)  "Agent contract" means a contract or agreement in
87	which a student athlete authorizes an athlete agent to represent
88	the student in the marketing of the student's athletic ability
89	or athletic reputation.
90	(2)  "Athlete agent" means an individual a person who,
91	directly or indirectly, recruits or solicits a student athlete
92	to enter into an agent contract, or who, for any type of
93	financial gain, procures, offers, promises, or attempts to
94	obtain employment or promotional fees or benefits for a student
95	athlete with a professional sports team or as a professional
96	athlete, or with any promoter who markets or attempts to market
97	the student athlete's athletic ability or athletic reputation.
98	This term includes all employees and other persons acting on
99	behalf of an athlete agent who participate in the activities
100	included under this subsection. The term does not include a
101	spouse, parent, sibling, grandparent, or guardian of the student
102	athlete or an individual acting solely on behalf of a
103	professional sports team or professional sports organization.
104	(3)  "Contact" means communication between an athlete agent
105	and a student athlete, by whatever means, directly or
106	indirectly, for the purpose of entering or soliciting entry into
107	an agent contract.
108	(4)  "Department" means the Department of Business and
109	Professional Regulation.
110	(5)  "Student athlete" means any student who:
111	(a)  Resides in Florida, has informed, in writing, a
112	college or university of the student's intent to participate in
113	that school's intercollegiate athletics, or who does participate
114	in that school's intercollegiate athletics and is eligible to do
115	so; or
116	(b)  Does not reside in Florida, but has informed, in
117	writing, a college or university in Florida of the student's
118	intent to participate in that school's intercollegiate
119	athletics, or who does participate in that school's
120	intercollegiate athletics and is eligible to do so.
121	(5)(6)  "Financial services" means the counseling on or the
122	making or execution of investment and other financial decisions
123	by the agent on behalf of the student athlete.
124	(6)  "National professional sports association" means an
125	organization that certifies athlete agents to represent athletes
126	in a particular professional sport. The term includes the
127	National Football League Players Association, National
128	Basketball Players Association, Major League Baseball Players
129	Association, National Hockey League Players' Association, and
130	the United States Soccer Federation.
131	(7)  "Participation" means practicing, competing, or
132	otherwise representing a college or university in
133	intercollegiate athletics.
134	(8)  "Student athlete" means any student who:
135	(a)  Resides in Florida, has informed, in writing, a
136	college or university of the student's intent to participate in
137	that school's intercollegiate athletics, or who does participate
138	in that school's intercollegiate athletics and is eligible to do
139	so; or
140	(b)  Does not reside in Florida, but has informed, in
141	writing, a college or university in Florida of the student's
142	intent to participate in that school's intercollegiate
143	athletics, or who does participate in that school's
144	intercollegiate athletics and is eligible to do so.
145	Section 2.  Section 468.453, Florida Statutes, is amended
146	to read:
147	468.453  Licensure required; qualifications; license
148	nontransferable; service of process; temporary license; license
149	or application from another state; notice of conviction or
150	decertification.-
151	(1)  Any individual person who practices as an athlete
152	agent in this state must be licensed pursuant to this part as:
153	(a)  A professional athlete agent; or
154	(b)  A limited athlete agent.
155	(2)  A person who is not an individual may not practice as
156	an athlete agent in this state.
157	(3)(2)  An individual A person shall be licensed as a
158	professional an athlete agent if the applicant:
159	(a)  Is at least 18 years of age.
160	(b)  Is of good moral character.
161	(c)  Is certified as an agent by a national professional
162	sports association.
163	(d)(c)  Has completed the application form and remitted an
164	application fee not to exceed $500, an active licensure fee not
165	to exceed $2,000, and all other applicable fees provided for in
166	this part or in chapter 455.
167	(e)(d)  Has submitted to the department a fingerprint card
168	for a criminal history records check. The fingerprint card shall
169	be forwarded to the Division of Criminal Justice Information
170	Systems within the Department of Law Enforcement for purposes of
171	processing the fingerprint card to determine if the applicant
172	has a criminal history record. The fingerprint card shall also
173	be forwarded to the Federal Bureau of Investigation for purposes
174	of processing the fingerprint card to determine if the applicant
175	has a criminal history record. The information obtained by the
176	processing of the fingerprint card by the Florida Department of
177	Law Enforcement and the Federal Bureau of Investigation shall be
178	sent to the department for the purpose of determining if the
179	applicant is statutorily qualified for licensure.
180	(f)(e)  Has not in any jurisdiction, within the preceding 5
181	years, been convicted or found guilty of or entered a plea of
182	nolo contendere for, regardless of adjudication, a crime which
183	relates to the applicant's practice or ability to practice as an
184	athlete agent.
185	(4)  An individual who is not certified as an agent by a
186	national professional sports association may be licensed only as
187	a limited athlete agent. A limited athlete agent may represent a
188	student athlete only in a sport that is not affiliated with a
189	national professional sports association.
190	(5)(3)  An unlicensed individual may act as an athlete
191	agent if:
192	(a)  A student athlete or person acting on the athlete's
193	behalf initiates communication with the individual; and
194	(b)  Within 7 days after an initial act as an athlete
195	agent, the individual submits an application for licensure.
196	(6)(4)  A license issued to an athlete agent is not
197	transferable.
198	(7)(5)  By acting as an athlete agent in this state, a
199	nonresident individual appoints the department as the
200	individual's agent for service of process in any civil action
201	related to the individual's acting as an athlete agent.
202	(8)(6)  The department may issue a temporary license while
203	an application for licensure is pending. If the department
204	issues a notice of intent to deny the license application, the
205	initial temporary license expires and may not be extended during
206	any proceeding or administrative or judicial review.
207	(9)(7)(a)  An individual who has submitted an application
208	and holds a certificate, registration, or license as an athlete
209	agent in another state may submit a copy of the application and
210	certificate, registration, or license from the other state in
211	lieu of submitting an application in the form prescribed
212	pursuant to this section. The department must accept the
213	application and the certificate from the other state as an
214	application for registration in this state if the application in
215	the other state:
216	1.  Was submitted in the other state within 6 months next
217	preceding the submission of the application in this state and
218	the applicant certifies that the information contained in the
219	application is current;
220	2.  Contains information substantially similar to or more
221	comprehensive than that required in an application submitted in
222	this state; and
223	3.  Was signed by the applicant under penalty of perjury.
224	(b)  An applicant applying under this subsection must meet
225	all other requirements for licensure as provided by this part.
226	(10)(a)  A licensed athlete agent shall notify the
227	department in writing of the athlete agent's:
228	1.  Conviction of a crime; or
229	2.  Decertification as an athlete agent by a national
230	professional sports association which has become final following
231	the conclusion of the appeals process.
232	(b)  An athlete agent shall notify the department within 30
233	days after the date upon which the athlete agent is convicted of
234	a crime or 30 days after the date upon which decertification
235	becomes final.
236	(c)  The department shall revoke the license of an athlete
237	agent who has been convicted of a crime or decertified by a
238	national professional sports association.
239	Section 3.  Subsections (4) and (12) of section 468.454,
240	Florida Statutes, are amended to read:
241	468.454  Contracts.-
242	(4)  An agent contract that does not conform to this
243	section is voidable by the student athlete. However, an agent
244	contract may conform to the form approved by a national
245	professional sports association for the sport in which the
246	student athlete will be represented if an athlete agent is
247	certified by the national professional sports association. If a
248	student athlete voids an agent contract, the student athlete is
249	not required to pay any consideration or return any
250	consideration received from the athlete agent to induce the
251	student athlete to enter into the contract.
252	(12)  An agent contract between a student athlete and an
253	individual a person not licensed under this part is void and
254	unenforceable. An agent contract with a student athlete in a
255	sport for which there is a national professional sports
256	association is void if the contract is negotiated by an athlete
257	agent holding a limited license.
258	Section 4.  Section 468.4542, Florida Statutes, is created
259	to read:
260	468.4542  Bond requirements.-
261	(1)  Before contacting a student athlete or entering into
262	an agent contract with a student athlete in this state, an
263	athlete agent shall deposit a surety bond with the department in
264	the amount of $50,000, payable to the state and conditioned on:
265	(a)  The athlete agent complying with this part;
266	(b)  The payment of any administrative penalty; and
267	(c)  The payment of any damages awarded to a college or
268	university or a student athlete as a result of the athlete agent
269	offering or furnishing a thing of value to a student athlete or
270	a family member of the athlete.
271	(2)  Before entering into a contract for financial services
272	with an athlete, an athlete agent shall deposit a surety bond
273	with the department in the amount of $100,000, payable to the
274	state and conditioned on:
275	(a)  The athlete agent complying with this part;
276	(b)  The payment of money owed to an individual or group of
277	individuals when the athlete agent or the athlete agent's
278	representative or employee receives the money; and
279	(c)  The payment of damages to a student athlete caused by
280	the intentional misrepresentation, fraud, deceit, or unlawful or
281	negligent act or omission of the athlete agent or of the athlete
282	agent's representative or employee while acting within the scope
283	of a contract for financial services.
284	(3)  An athlete agent shall maintain a bond deposited with
285	the department for at least 2 years after the date upon which
286	the athlete agent ceases to provide financial services to a
287	student athlete or the date upon which the athlete agent's
288	license expires or is revoked.
289	Section 5.  Subsections (1) and (3) of section 468.456,
290	Florida Statutes, are amended, and subsection (4) is added to
291	that section, to read:
292	468.456  Prohibited acts.-
293	(1)  The following acts are shall be grounds for the
294	disciplinary actions provided for in subsection (3):
295	(a)  A violation of any law relating to the practice as an
296	athlete agent including, but not limited to, violations of this
297	part and chapter 455 and any rules adopted promulgated
298	thereunder.
299	(b)  Failure to account for or to pay, within a reasonable
300	time, not to exceed 30 days, assets belonging to another which
301	have come into the control of the athlete agent in the course of
302	conducting business as an athlete agent.
303	(c)  Any conduct as an athlete agent which demonstrates bad
304	faith or dishonesty.
305	(d)  Commingling money or property of another person with
306	the athlete agent's money or property. Every athlete agent shall
307	maintain a separate trust or escrow account in an insured bank
308	or savings and loan association located in this state in which
309	shall be deposited all proceeds received for another person
310	through the athlete agent.
311	(e)  Accepting as a client a student athlete referred by
312	and in exchange for any consideration made to an employee of or
313	a coach for a college or university located in this state.
314	(f)  Before a student athlete completes his or her last
315	intercollegiate sports contest, offering anything of value to
316	the student athlete or an individual related to the student
317	athlete within the second degree by affinity or consanguinity
318	any person to induce a student athlete to enter into an
319	agreement by which the agent will represent the student athlete.
320	However, negotiations regarding the agent's fee are shall not be
321	considered an inducement.
322	(g)  Before a student athlete completes his or her last
323	intercollegiate sports contest, furnishing anything of value to
324	the student athlete or an individual related to the student
325	athlete within the second degree by affinity or consanguinity.
326	(h)(g)  Knowingly providing financial benefit from the
327	licensee's conduct of business as an athlete agent to another
328	athlete agent whose license to practice as an athlete agent is
329	suspended or has been permanently revoked within the previous 5
330	years.
331	(i)(h)  Committing mismanagement or misconduct as an
332	athlete agent which causes financial harm to a student athlete
333	or college or university.
334	(j)(i)  Failing to include the athlete agent's name and
335	license number in any advertising related to the business of an
336	athlete agent. Advertising does shall not include clothing or
337	other novelty items.
338	(k)(j)  Publishing or causing to be published false or
339	misleading information or advertisements, or giving any false
340	information or making false promises to a student athlete
341	concerning employment or financial services.
342	(l)(k)  Violating or aiding and abetting another person to
343	violate the rules of the athletic conference or collegiate
344	athletic association governing a student athlete or student
345	athlete's college or university.
346	(m)(l)  Having contact, as prohibited by this part, with a
347	student athlete.
348	(n)(m)  Postdating agent contracts.
349	(o)(n)  Having an athlete agent certification acted against
350	by a professional athletic club or association.
351	(p)(o)  Being employed to illegally recruit or solicit
352	student athletes by being used utilized by or otherwise
353	collaborating with a person known to have been convicted or
354	found guilty of, or to have entered a plea of nolo contendere
355	to, a violation of s. 468.45615, regardless of adjudication.
356	(q)  Committing an act or causing a person to commit an act
357	on the athlete agent's behalf which causes a student athlete to
358	violate a rule of the national professional sports association
359	for the promotion and regulation of intercollegiate athletics of
360	which the student athlete's college or university is a member.
361	(3)  When the department finds any person guilty of any of
362	the prohibited acts set forth in subsection (1), the department
363	may enter an order imposing one or more of the penalties
364	provided for in s. 455.227, and an administrative fine not to
365	exceed $50,000 for a violation under paragraph (1)(g) or
366	paragraph (1)(q) or an administrative fine not to exceed $25,000
367	for any other each separate offense. In addition to any other
368	penalties or disciplinary actions provided for in this part, the
369	department shall suspend or revoke the license of any athlete
370	agent licensed under this part who violates paragraph (1)(f) or
371	paragraph (1)(p) (1)(o) or s. 468.45615.
372	(4)  If an athlete agent fails to pay an administrative
373	penalty, the department may revoke, refuse to renew, or refuse
374	to issue the athlete agent's license.
375	Section 6.  Subsection (1) of section 468.45615, Florida
376	Statutes, is amended, and subsection (5) is added to that
377	section, to read:
378	468.45615  Provision of illegal inducements to athletes
379	prohibited; penalties; license suspension.-
380	(1)(a)  Any person who violates s. 468.456(1)(f) commits is
381	guilty of a felony of the second degree, punishable as provided
382	in s. 775.082, s. 775.083, s. 775.084, s. 775.089, or s.
383	775.091.
384	(b)  Any person who intentionally or knowingly violates s.
385	468.456(1)(g) or (1)(q) commits a felony of the third degree,
386	punishable as provided in s. 775.082, s. 775.083, s. 775.084, s.
387	775.089, or s. 775.091.
388	(5)  The department shall send a notice of an athlete
389	agent's conviction of an offense under this section to each
390	national professional sports association that certifies the
391	athlete agent.
392	Section 7.  Section 468.4562, Florida Statutes, is amended
393	to read:
394	468.4562  Civil action by a college or university or
395	student athlete institution.-
396	(1)  A college or university or a student athlete may sue
397	for damages, as provided by this section, any person who
398	violates this part. A college or university or a student athlete
399	may seek equitable relief to prevent or minimize harm arising
400	from acts or omissions that which are or would be a violation of
401	this part.
402	(2)(a)  For purposes of this section, a college or
403	university is damaged if, because of activities of the person,
404	the college or university is penalized, disqualified, or
405	suspended from participation in intercollegiate athletics by a
406	national association for the promotion and regulation of
407	intercollegiate athletics, by an intercollegiate athletic
408	conference, or by reasonable self-imposed disciplinary action
409	taken to mitigate sanctions likely to be imposed by such
410	organization and, because of that penalty, disqualification,
411	suspension, or action the institution:
412	1.(a)  Loses revenue from media coverage of a sports
413	contest;
414	2.(b)  Loses the right to grant an athletic scholarship;
415	3.(c)  Loses the right to recruit an athlete;
416	4.(d)  Is prohibited from participating in postseason
417	athletic competition;
418	5.(e)  Forfeits an athletic contest; or
419	6.(f)  Otherwise suffers an adverse financial impact.
420	(b)  A student athlete is damaged if:
421	1.  The athlete agent's violation causes a national
422	association for the promotion and regulation of intercollegiate
423	athletics to disqualify or suspend the student athlete from
424	participating in intercollegiate sports contests; and
425	2.  The disqualification or suspension of the student
426	athlete causes the student athlete to suffer an adverse
427	financial impact.
428	(3)  A plaintiff An institution that prevails in a suit
429	brought under this section may recover:
430	(a)  Actual damages;
431	(b)  Punitive damages;
432	(c)  Treble damages;
433	(d)  Court costs; and
434	(e)  Reasonable attorney attorney's fees.
435	(4)  A right of action under this section does not accrue
436	until the plaintiff educational institution discovers, or by the
437	exercise of reasonable diligence would have discovered, the
438	violation by the athlete agent or former student athlete.
439	(5)  Any liability of the athlete agent or the former
440	student athlete under this section is several and not joint.
441	(6)  This part does not restrict rights, remedies, or
442	defenses of any person under law or equity.
443	Section 8.  Section 468.45625, Florida Statutes, is created
444	to read:
445	468.45625  Publication of responsibilities; colleges and
446	universities.-
447	(1)  The department shall publish on its Internet website
448	information prescribing the responsibilities of a college or
449	university under this part.
450	(2)  The department shall notify the athletic director or
451	other appropriate official of each college or university if
452	there are any changes to the responsibilities.
453	Section 9.  Subsection (1) of section 468.4565, Florida
454	Statutes, is amended to read:
455	468.4565  Business records requirement.-
456	(1)  An athlete agent shall establish and maintain complete
457	financial and business records. The athlete agent shall save
458	each entry into a financial or business record for at least 5
459	years from the date of entry. These records must include:
460	(a)  The name, and address, and telephone number of each
461	individual represented by the athlete agent;
462	(b)  Any agent contract or contract for financial services
463	entered into by the athlete agent; and
464	(c)  Any direct costs incurred by the athlete agent in the
465	recruitment or solicitation of a student athlete to enter into
466	an agent contract or contract for financial services; and.
467	(d)  The name and address of each national professional
468	sports association that currently certifies the athlete agent.
469	Section 10.  This act shall take effect July 1, 2012.

CODING: Words stricken are deletions; words underlined are additions.