CHAPTER 2051. ATHLETE AGENTS
OCCUPATIONS CODE
TITLE 13. SPORTS, AMUSEMENTS, AND ENTERTAINMENT
SUBTITLE B. SPORTS
CHAPTER 2051. ATHLETE AGENTS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 2051.001. DEFINITIONS. In this chapter:
(1) "Agent contract" means a contract or an agreement under
which an athlete authorizes an athlete agent to negotiate for
employment on behalf of the athlete with a professional sports
team.
(2) "Athlete" means an individual who:
(A) is eligible to participate in intercollegiate sports
contests as a member of a sports team or as an individual
competitor in a sport at an institution of higher education; or
(B) has participated as a member of an intercollegiate sports
team or as an individual competitor in an intercollegiate sport
at an institution of higher education and has never signed an
employment contract with a professional sports team.
(3) "Athlete agent" means a person who:
(A) for compensation, directly or indirectly recruits or
solicits an athlete to enter into an agent contract, a financial
services contract, or a professional sports services contract
with that person or another person; or
(B) for a fee, procures, offers, promises, or attempts to obtain
employment for an athlete with a professional sports team.
(4) "Financial services contract" means a contract or an
agreement under which an athlete authorizes the athlete agent to
perform financial services for the athlete, including making and
executing investment and other financial decisions for the
athlete.
(5) "Institution of higher education" means an institution of
higher education or a private or independent institution of
higher education, as defined by Section 61.003, Education Code,
that is a member of a national association for the promotion and
regulation of intercollegiate athletics.
(6) "Schedule of fees" includes the fees and percentages charged
by an athlete agent for professional services performed for an
athlete.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
Amended by Acts 2003, 78th Leg., ch. 821, Sec. 1, eff. Sept. 1,
2003.
Sec. 2051.002. PARTICIPATION IN INTERCOLLEGIATE SPORTS CONTESTS.
An athlete is not eligible to participate in intercollegiate
sports contests if the athlete:
(1) declares that the athlete is eligible for recruitment by a
professional sports team; or
(2) has concluded, in the athlete's final year of eligibility,
the athlete's final intercollegiate sports contest, as determined
by the governing body of the national association for the
promotion and regulation of intercollegiate athletics of which
the athlete's institution of higher education is a member.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
Amended by Acts 2003, 78th Leg., ch. 821, Sec. 2, eff. Sept. 1,
2003.
Sec. 2051.003. EFFECT OF PERSONAL SERVICE CONTRACT. In this
chapter, a personal service contract between an athlete and the
owner or prospective owner of a professional sports team in which
the athlete agrees to perform future athletic services
constitutes employment with a professional sports team.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
Sec. 2051.004. ATHLETE AGENT CONTACT. (a) An athlete agent may
contact an athlete only as provided by this chapter.
(b) Except as provided by Subsection (c), an athlete agent may
contact a person who declares that the person is eligible for
recruitment by a professional sports team.
(c) If a person eligible for recruitment by a professional
sports team later becomes eligible to participate in
intercollegiate sports, an athlete agent may contact the person
only as provided by this chapter.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
Sec. 2051.005. CERTAIN PROFESSIONAL SERVICES EXEMPT. This
chapter does not apply to a person who directly or indirectly
recruits or solicits an athlete to enter into a contract with the
person in which, for compensation, the person performs financial
services for the athlete if:
(1) the person is licensed or registered by the state as:
(A) a dealer, agent, investment adviser, or investment adviser
representative;
(B) a real estate broker or salesperson;
(C) an insurance agent; or
(D) another professional;
(2) the financial services performed by the person are of a type
that are customarily performed by a person licensed in that
profession; and
(3) the person does not:
(A) recruit or solicit the athlete to enter into an agent
contract or a professional services contract on behalf of the
person, an affiliate, a related entity, or a third party; or
(B) procure, offer, promise, or attempt to obtain for the
athlete employment with a professional sports team.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
Amended by Acts 2001, 77th Leg., ch. 1091, Sec. 4.04, eff. Sept.
1, 2001.
Sec. 2051.006. UNIFORMITY OF APPLICATION AND CONSTRUCTION. In
applying this chapter, consideration must be given to the need to
promote uniformity of the law among states that have enacted
similar laws.
Added by Acts 2003, 78th Leg., ch. 821, Sec. 3, eff. Sept. 1,
2003.
SUBCHAPTER B. POWERS AND DUTIES OF SECRETARY OF STATE
Sec. 2051.051. ADMINISTRATION OF CHAPTER. (a) The secretary of
state shall:
(1) actively enforce this chapter;
(2) set reasonable and necessary fees for the administration of
this chapter; and
(3) conduct investigations necessary to ensure compliance with
this chapter.
(b) The secretary may adopt rules necessary to administer this
chapter.
(c) Fees shall be set in an amount to cover the costs of
administering this chapter.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
Sec. 2051.052. PUBLICATION OF COMPLIANCE RESPONSIBILITIES. (a)
The secretary of state shall, at least once a year, publish
information that prescribes the compliance responsibilities of an
institution of higher education under this chapter.
(b) The secretary shall mail, return receipt requested, a copy
of the compliance responsibilities published under Subsection (a)
to the athletic director or other appropriate official of each
institution of higher education.
(c) The secretary shall, as necessary, update the compliance
responsibilities materials.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
SUBCHAPTER C. REGISTRATION
Sec. 2051.101. REGISTRATION REQUIRED. (a) Except as provided
by Subsection (b), a person may not act as an athlete agent in
this state or represent that the person is an athlete agent in
this state unless the person holds a certificate of registration
under this chapter.
(b) Before the issuance of a certificate of registration under
this chapter, a person may act as an athlete agent in this state
for all purposes except signing an agent contract, if:
(1) an athlete or a person acting on behalf of the athlete
initiates communication with the person; and
(2) within seven days after the date of the initial act as an
athlete agent, the person submits an application for registration
under this chapter.
(c) An agent contract negotiated by an unregistered athlete
agent is void.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
Amended by Acts 2003, 78th Leg., ch. 821, Sec. 4, eff. Sept. 1,
2003.
Sec. 2051.102. APPLICATION REQUIREMENTS. (a) Except as
provided by Subsection (e), an applicant for registration as an
athlete agent must apply on a form prescribed by the secretary of
state.
(b) An applicant must provide information required by the
secretary of state, including:
(1) the applicant's:
(A) name;
(B) principal business address;
(C) business or occupation for the five years immediately
preceding the date of application; and
(D) formal training, practical experience, and educational
background relating to the applicant's professional activities as
an athlete agent;
(2) the name, sport, and last known team for each person the
applicant represented as an athlete agent during the five years
immediately preceding the date of application;
(3) whether the applicant or a person described by Subdivision
(5) has been subject to any of the following:
(A) a conviction of a crime that in this state is a felony or a
crime of moral turpitude;
(B) an administrative or a judicial determination finding the
applicant or other person made a false, misleading, deceptive, or
fraudulent representation;
(C) a sanction or suspension related to occupational or
professional conduct;
(D) a denial of an application for a certificate of registration
or license as an athlete agent; or
(E) a denial, revocation, or suspension of a certificate of
registration or license as an athlete agent;
(4) whether the applicant or a person described by Subdivision
(5) has engaged in conduct resulting in the imposition on an
athlete or educational institution of a sanction, suspension, or
declaration of ineligibility to participate in an interscholastic
or intercollegiate athletic event; and
(5) except as provided by Subsection (d), the name and address
of each person, except a bona fide employee on salary, who is
financially interested as a partner, associate, or profit sharer
in the applicant's business.
(c) An application shall include the names and addresses of
three professional references.
(d) If an applicant is a member of the State Bar of Texas, the
application information required under Subsection (b)(5) must
include the name and address of each person who is involved in
the activities of the athlete agent. This subsection does not
require an applicant to state the name and address of a member of
a law firm or professional corporation who is not involved in the
business of the athlete agent.
(e) A person seeking certification as an athlete agent under
this chapter who holds a certificate of registration or license
as an athlete agent in another state may submit a copy of the
previous application and certificate or license instead of
submitting the application required by this section. The
secretary of state shall accept the application and the
certificate or license from the other state as an application for
registration in this state if the application to the other state:
(1) was submitted to the other state not earlier than the 180th
day before the date the application is submitted in this state
and the applicant certifies that the information contained in the
application is current;
(2) contains information substantially similar to or more
comprehensive than the information required by this section; and
(3) was signed by the applicant under penalty of perjury.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
Amended by Acts 2003, 78th Leg., ch. 821, Sec. 5, eff. Sept. 1,
2003.
Sec. 2051.103. CORPORATION, ASSOCIATION, OR PARTNERSHIP
APPLICANT. If an applicant for registration is a corporation,
association, or partnership, each officer, associate, or partner,
as appropriate, must provide the information required under
Section 2051.102.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
Sec. 2051.104. SUPPLEMENTAL APPLICATION REQUIREMENTS. (a) An
applicant for registration that is a corporation, association,
partnership, or another entity other than a sole proprietorship
or an individual shall attach to the application for registration
under Section 2051.102 or the renewal application under Section
2051.108 the name and address of each individual who recruits or
solicits an athlete to enter into an agent contract, a financial
services contract, or a professional sports services contract
with the corporation, association, partnership, or other entity.
(b) A registered athlete agent that changes the individuals
identified under Subsection (a) shall, not later than the 30th
day after the date the change is made, file with the secretary of
state a statement showing the change.
(c) The secretary may prescribe forms for the statements
required under this section.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
Sec. 2051.105. DENIAL OF APPLICATION. (a) The secretary of
state shall deny an application for registration if the applicant
has been convicted of:
(1) a felony; or
(2) a misdemeanor involving moral turpitude.
(b) The secretary of state may deny an application for
registration if the secretary of state determines the applicant
has engaged in conduct that has a significant adverse effect on
the applicant's fitness to act as an athlete agent. In making the
determination, the secretary of state may consider whether the
applicant has:
(1) made a materially false, misleading, deceptive, or
fraudulent representation in the application or as an athlete
agent;
(2) engaged in conduct that would disqualify the applicant from
serving in a fiduciary capacity;
(3) engaged in conduct prohibited by Section 2051.351;
(4) had a registration or licensure as an athlete agent denied,
suspended, or revoked;
(5) been denied renewal of registration or licensure as an
athlete agent in any state;
(6) engaged in conduct that resulted in the imposition on an
athlete or educational institution of a sanction, suspension, or
declaration of ineligibility to participate in an interscholastic
or intercollegiate athletic event; or
(7) engaged in conduct that adversely reflects on the
applicant's credibility, honesty, or integrity.
(c) In making a determination under Subsection (b), the
secretary of state shall consider:
(1) how recently the conduct occurred;
(2) the nature of the conduct and the context in which it
occurred; and
(3) any other relevant conduct of the applicant.
(d) Judicial review of a denial of an application for
registration under Subsection (a) or (b) is by trial de novo and
is subject to Section 2001.173, Government Code.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
Amended by Acts 2003, 78th Leg., ch. 821, Sec. 6, eff. Sept. 1,
2003.
Sec. 2051.106. TEMPORARY OR PROVISIONAL REGISTRATION. The
secretary of state may issue a temporary or provisional
certificate of registration that is valid for not more than 90
days to an applicant for registration or renewal of registration
if the applicant's application has been made and the registration
process has not been completed.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
Sec. 2051.107. REGISTRATION DURATION; EXPIRATION. (a) Except
as provided by Subsection (b), a certificate of registration
issued under this chapter is valid for a period of not more than
one year from the date of issuance.
(b) The secretary of state, by rule, may adopt a system under
which certificates of registration expire on various dates during
the year.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
Sec. 2051.108. REGISTRATION RENEWAL. (a) Except as provided by
Subsection (e), an applicant for renewal of registration must
apply on a form prescribed by the secretary of state.
(b) A renewal application must include:
(1) the name and address of each athlete for whom the athlete
agent is performing professional services for compensation on the
date of the renewal application;
(2) the name and address of each athlete for whom the athlete
agent has performed professional services for compensation during
the three years immediately preceding the date of the renewal
application but for whom the athlete agent is not performing
professional services on the date of the renewal application; and
(3) any other information prescribed by the secretary of state.
(c) A renewal application under this section must be accompanied
by an appropriate renewal fee.
(d) If a certificate of registration expires earlier than the
anniversary of the date of issuance, the renewal fee that must
accompany a renewal application under this section shall be
prorated according to the number of months that the registration
is valid.
(e) A person who has submitted an application for renewal of
registration or licensure as an athlete agent in another state
may submit a copy of the application and certificate of
registration or license from the other state instead of
submitting the application required by this section. The
secretary of state shall accept the application for renewal from
the other state as an application for renewal under this section
if the application to the other state:
(1) was submitted to the other state not earlier than the 180th
day before the date the renewal application is submitted in this
state and the applicant certifies that the information contained
in the application is current;
(2) contains information substantially similar to or more
comprehensive than the information required by this section; and
(3) was signed by the applicant under penalty of perjury.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
Amended by Acts 2003, 78th Leg., ch. 821, Sec. 7, eff. Sept. 1,
2003.
SUBCHAPTER D. ATHLETE AGENT BOND
Sec. 2051.151. BOND DEPOSIT. (a) An athlete agent shall,
before entering into a financial services contract with an
athlete, deposit with the secretary of state a surety bond, in
the amount of $100,000, payable to the state and conditioned on:
(1) the athlete agent complying with this chapter;
(2) the payment of money owed to an individual or group of
individuals when the athlete agent or the athlete agent's
representative or agent receives the money; and
(3) the payment of damages to an athlete caused by the
intentional misrepresentation, fraud, deceit, or unlawful or
negligent act or omission of the athlete agent or of the athlete
agent's representative or employee while acting within the scope
of the financial services contract.
(b) An athlete agent shall maintain a bond deposited under
Subsection (a) for not less than two years after the date that
the athlete agent ceases to provide financial services to an
athlete.
(c) This section does not limit the amount of damages
recoverable in a suit filed against an athlete agent to the
amount of the bond.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
Sec. 2051.152. CANCELLATION OF BOND; SUSPENSION OF CERTIFICATE.
(a) Not later than the 30th day after the date an athlete agent
receives a notice of cancellation from the surety of a bond
deposited under Section 2051.151, the athlete agent shall file a
new bond with the secretary of state.
(b) The secretary shall suspend the certificate of registration
of an athlete agent who fails to file a new bond as required by
Subsection (a) until a new bond is filed.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
Sec. 2051.153. EXEMPTION FROM BOND REQUIREMENTS FOR AGENT ONLY
CONTRACTS. This subchapter does not apply to an athlete agent
who enters into only an agent contract with an athlete.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
SUBCHAPTER E. FORM, CONTENT, AND FILING OF CERTAIN CONTRACTS
Sec. 2051.201. CONTRACT FORM. A registered athlete agent must
use a form approved by the secretary of state for any agent
contract or financial services contract.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
Sec. 2051.202. CONTRACT SIGNING. An athlete may sign an athlete
agent contract at any time as permitted by the national
association for the promotion and regulation of intercollegiate
athletics of which the athlete's institution of higher education
is a member.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
Sec. 2051.203. CONTRACT REQUIREMENTS RELATING TO FEES AND
SERVICES. (a) An agent contract or a financial services
contract must include:
(1) a schedule of fees, including:
(A) the amount and method of computing the consideration to be
paid by the athlete for services to be provided by the athlete
agent under the contract; and
(B) any other consideration the athlete agent received or will
receive from any other source for entering into the contract or
for providing the services;
(2) a description of the professional services that the athlete
agent will perform for the athlete;
(3) the name of any person not listed in the application for
registration or renewal of registration who will be compensated
because the athlete signed the agent contract;
(4) a description of any expenses of the athlete agent the
athlete agrees to reimburse;
(5) the duration of the contract; and
(6) the date the contract was signed.
(b) A registered athlete agent may charge a fee only as provided
by the schedule of fees in the contract.
(c) A change in the schedule of fees in a contract takes effect
on the seventh day after the date on which the athlete agent
files with the secretary of state a copy of the contract as
required by Section 2051.205(b).
(d) The athlete agent shall give a signed copy of the contract
to the athlete at the time the contract is signed.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
Amended by Acts 2003, 78th Leg., ch. 821, Sec. 8, eff. Sept. 1,
2003.
Sec. 2051.204. CONTRACT REQUIREMENTS RELATING TO NOTICE. (a)
An agent contract or a financial services contract must include
the following notice:
(1) THIS ATHLETE AGENT IS REGISTERED WITH THE SECRETARY OF STATE
OF THE STATE OF TEXAS. REGISTRATION WITH THE SECRETARY OF STATE
DOES NOT IMPLY APPROVAL OR ENDORSEMENT BY THE SECRETARY OF STATE
OF THE COMPETENCE OF THE ATHLETE AGENT OR OF THE SPECIFIC TERMS
AND CONDITIONS OF THIS CONTRACT.
NOTICE TO CLIENT
(2) DO NOT SIGN THIS CONTRACT UNTIL YOU HAVE READ IT OR IF IT
CONTAINS BLANK SPACES.
(3) IF YOU DECIDE THAT YOU DO NOT WISH TO PURCHASE THE SERVICES
OF THE ATHLETE AGENT, YOU MAY CANCEL THIS CONTRACT BY NOTIFYING
THE ATHLETE AGENT IN WRITING OF YOUR DESIRE TO CANCEL THE
CONTRACT NOT LATER THAN THE 16TH DAY AFTER THE DATE ON WHICH YOU
SIGN THIS CONTRACT. YOU MAY NOT WAIVE THE RIGHT TO CANCEL THIS
CONTRACT. IF YOU CANCEL THIS CONTRACT WITHIN 16 DAYS, YOU ARE NOT
REQUIRED TO PAY ANY CONSIDERATION UNDER THE CONTRACT OR RETURN
ANY CONSIDERATION RECEIVED.
(4) YOU MAY LOSE YOUR ELIGIBILITY TO COMPETE AS AN ATHLETE IN
YOUR SPORT. CANCELLATION OF THIS CONTRACT MAY NOT REINSTATE YOUR
ELIGIBILITY.
(5) IF YOU HAVE AN ATHLETIC DIRECTOR, WITHIN 72 HOURS AFTER
ENTERING INTO THIS CONTRACT BOTH YOU AND YOUR ATHLETE AGENT MUST
NOTIFY YOUR ATHLETIC DIRECTOR.
(b) The notice required under Subsection (a) must be:
(1) printed in not less than 10-point typeface; and
(2) boldfaced, capitalized, underlined, or otherwise set apart
from the surrounding provisions of the contract to make the
notice conspicuous.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
Amended by Acts 2003, 78th Leg., ch. 821, Sec. 9, eff. Sept. 1,
2003.
Sec. 2051.205. FILING REQUIREMENTS. (a) A registered athlete
agent shall, not later than the fifth day after the date an
athlete signs an agent contract or financial services contract,
file a copy of the contract with:
(1) the secretary of state; and
(2) if the athlete is a student at an institution of higher
education, the athletic director of the athlete's institution.
(b) If the schedule of fees in an agent or financial services
contract is changed, the athlete agent shall file with the
secretary a copy of the changed contract.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
Sec. 2051.206. MULTIYEAR CONTRACT FEE. (a) This section
applies only to a multiyear professional sports services contract
negotiated by a registered athlete agent.
(b) A registered athlete agent may not collect during a 12-month
period a fee that exceeds the amount an athlete will receive
during that same 12-month period under the professional sports
services contract negotiated by the athlete agent.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
SUBCHAPTER F. IMPLEMENTATION STANDARDS OF INSTITUTIONS OF HIGHER
EDUCATION
Sec. 2051.251. ADOPTION OF IMPLEMENTATION STANDARDS. (a) An
institution of higher education shall adopt standards relating to
the implementation of this chapter, including specific guidelines
governing the athlete agent interview program sponsored by the
institution under Section 2051.301.
(b) Guidelines adopted under Subsection (a) relating to the
athlete agent interview program must specify:
(1) the scheduling of interview periods;
(2) the duration of an interview period;
(3) the location on the institution's campus for conducting
interviews; and
(4) any terms or conditions under which an athlete agent may
contact an athlete during an interview period.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
Sec. 2051.252. APPROVAL AND FILING OF STANDARDS. (a) After
adopting implementation standards under Section 2051.251, an
institution of higher education shall:
(1) submit the standards to the institution's athletic council
or other analogous body for approval; and
(2) file a copy of the approved standards with the secretary of
state not later than the 30th day after the date the standards
are approved under Subdivision (1).
(b) If an institution of higher education amends the
implementation standards, the institution shall, not later than
the 30th day after the date the amendment is effective, file a
copy of the amended standards with the secretary.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
Sec. 2051.253. DESIGNATION OF COMPLIANCE COORDINATOR. An
institution of higher education shall:
(1) designate an individual to serve as a compliance coordinator
for that institution; and
(2) report the name of the compliance coordinator to the
secretary of state in a manner prescribed by the secretary.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
Sec. 2051.254. WRITTEN REQUEST FOR IMPLEMENTATION STANDARDS. On
receipt of a written request from a registered athlete agent, the
secretary of state or a compliance coordinator designated under
Section 2051.253 shall provide a copy of the implementation
standards adopted by an institution of higher education under
Section 2051.251.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
Sec. 2051.255. NOTIFICATION OF AVAILABILITY OF IMPLEMENTATION
STANDARDS. (a) The secretary of state shall notify each
registered athlete agent in writing of the availability, on
request, under Section 2051.254 of a copy of the implementation
standards of each institution of higher education.
(b) Notice under Subsection (a) must include a statement that:
(1) the standards adopted by an institution of higher education
specify the policies of that institution relating to the time,
place, and duration of athlete agent interviews conducted on the
institution's campus; and
(2) each institution of higher education has a designated
compliance coordinator who the athlete agent may contact for
additional information.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
Sec. 2051.256. WRITTEN REQUEST FOR COMPLIANCE COORDINATORS. On
receipt of a written request from a registered athlete agent, the
secretary of state shall provide a copy of the names of the
compliance coordinators designated under Section 2051.253.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
SUBCHAPTER G. ATHLETE AGENT INTERVIEW PROGRAM
Sec. 2051.301. ATHLETE AGENT INTERVIEW PROGRAM. (a) Each
institution of higher education shall sponsor an athlete agent
interview program on the institution's campus.
(b) A registered athlete agent may interview an athlete during
an interview program to discuss:
(1) financial services and advice offered by the athlete agent;
and
(2) the athlete agent's representation of the athlete relating
to marketing the athlete's athletic ability and reputation.
(c) The compliance coordinator or secretary of state shall, not
later than the 30th day before the date on which an interview
program sponsored under this section begins, notify each
registered athlete agent in writing of the interview program.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
Sec. 2051.302. COMPLIANCE COORDINATOR'S DUTIES. Each compliance
coordinator designated under Section 2051.253 shall:
(1) establish the schedule for the athlete agent interview
program sponsored under Section 2051.301 by the coordinator's
institution of higher education;
(2) not later than the 30th day before the date on which the
athlete agent interview program begins, notify each registered
athlete agent, in writing, of the interview program, unless the
secretary of state provides notification under Section
2051.301(c); and
(3) ensure that the coordinator's institution of higher
education and the athletes attending the institution comply with
this chapter and the rules adopted under this chapter.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
Sec. 2051.303. TIME AND DURATION OF INTERVIEW PROGRAM. An
athlete agent interview program sponsored under this subchapter:
(1) may not continue for more than 30 consecutive business days
as determined by the athlete's institution of higher education;
and
(2) must be conducted during the off-season period before the
completion of the athlete's final year of eligibility.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
Sec. 2051.304. COMPLIANCE WITH INTERVIEW GUIDELINES. An athlete
agent shall strictly comply with the guidelines adopted under
Section 2051.251 relating to the time, place, and duration of an
athlete agent interview program.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
SUBCHAPTER H. RESTRICTION OF AGENT'S PRACTICE
Sec. 2051.351. PROHIBITIONS. (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;
(3) make a false promise or representation relating to
employment;
(4) divide fees with or receive compensation from:
(A) a person exempt from registration under this chapter under
Section 2051.005; or
(B) a professional sports league or franchise, including a
representative or employee of the league or franchise;
(5) enter into a written or oral agreement with an employee of
an institution of higher education in which the athlete agent
offers a thing of value to the employee for the referral of
clients by the employee;
(6) offer a thing of value to induce the athlete to enter into
an agreement with the athlete agent in which the athlete agent
will represent the athlete;
(7) except as provided by this chapter, before an athlete
completes the athlete's last intercollegiate sports contest:
(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;
(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;
(9) initiate any contact with an athlete, except as authorized
by this chapter;
(10) fail to retain or permit inspection of the records required
to be retained by Section 2051.352;
(11) predate or postdate an agent contract; or
(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.
(b) This section does not prohibit:
(1) an athlete agent from sending written materials to an
athlete relating to the professional credentials or services of
the athlete agent if the athlete agent simultaneously sends a
copy of the materials to the athletic director of the athlete's
institution of higher education or the athletic director's
designee; or
(2) an athlete or an athlete's parent or legal guardian from
contacting an athlete agent to schedule a meeting with the
athlete agent to assess:
(A) the agent's professional proficiency in:
(i) representing the athlete; or
(ii) marketing the athlete's athletic ability or reputation; or
(B) the financial services offered by the athlete agent.
(c) If an athlete agent is contacted by an athlete or the
athlete's parent or legal guardian to schedule a meeting to
discuss the services offered by the athlete agent, the athlete
agent shall, before meeting with the athlete or the athlete's
parent or legal guardian, notify the athletic director of the
athlete's institution of higher education or the athletic
director's designee of the proposed meeting.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
Amended by Acts 2003, 78th Leg., ch. 821, Sec. 10, eff. Sept. 1,
2003.
Sec. 2051.352. RECORDKEEPING REQUIREMENT. (a) An athlete agent
shall maintain a record of:
(1) each athlete represented by the athlete agent, including:
(A) the name and address of the athlete;
(B) fees paid by the athlete; and
(C) services performed by the athlete agent for the athlete;
(2) travel and entertainment expenses incurred by the athlete
agent, including expenses for:
(A) food and beverages;
(B) hospitality rooms;
(C) sporting events;
(D) theater and music events; and
(E) transportation, lodging, and admission relating to
entertainment;
(3) any agent contract entered into by the athlete agent; and
(4) any direct costs incurred by the athlete agent in recruiting
or soliciting an athlete to enter into an agent contract.
(b) A record of travel and entertainment expenses maintained
under Subsection (a)(2) must state:
(1) the nature of the expense;
(2) the amount of the expense;
(3) the purpose of the expense;
(4) the date and place of the expense; and
(5) the name of each person on whose behalf the expenditure was
made.
(c) An athlete agent shall provide a copy of a record maintained
under this section to the secretary of state on request.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
Amended by Acts 2003, 78th Leg., ch. 821, Sec. 11, eff. Sept. 1,
2003.
Sec. 2051.353. DISCLOSURE REQUIREMENT. An athlete agent shall
disclose the athlete agent's name and address in any advertising
used by the athlete agent.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
Sec. 2051.354. AGENT LIABILITY FOR VIOLATION OF CHAPTER. A
registered or unregistered athlete agent who violates this
chapter may be subject to:
(1) an administrative penalty imposed under Subchapter J;
(2) forfeiture of the right to payment for a thing of value that
the athlete agent gives to an athlete to induce the athlete to
enter into a contract;
(3) a refund of consideration paid to the athlete agent; and
(4) payment of reasonable attorney's fees and court costs
incurred by an athlete who files suit against an athlete agent
for violation of this chapter.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
SUBCHAPTER I. INVESTIGATION OF AGENTS BY SECRETARY OF STATE
Sec. 2051.401. INVESTIGATIVE AUTHORITY: SUBPOENA AND SUMMONS.
(a) The secretary of state may issue a subpoena or summons to
compel:
(1) the attendance and testimony of a witness; or
(2) the production of:
(A) a book;
(B) an account;
(C) a record;
(D) a magnetic or electronic recording;
(E) a paper;
(F) a contract;
(G) correspondence; or
(H) any other record that the secretary determines is relevant
or material to an investigation under this chapter.
(b) If the secretary issues a subpoena or summons under
Subsection (a), the secretary, or an officer designated by the
secretary, may:
(1) administer an oath;
(2) examine a witness; and
(3) receive evidence.
(c) Information and evidence obtained by the secretary under
this section is:
(1) confidential and not open to public inspection, except by a
court order; and
(2) exempt from disclosure under Chapter 552, Government Code.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
Sec. 2051.402. SERVICE OF PROCESS. (a) The secretary of state,
the secretary's authorized agent, a sheriff, or a constable may
serve a subpoena or summons issued by the secretary of state
under Section 2051.401:
(1) on an individual by:
(A) delivering an executed copy of the subpoena or summons to
the individual; or
(B) mailing an executed copy of the subpoena or summons by
registered or certified mail, return receipt requested, to the
individual's:
(i) place of residence; or
(ii) principal place of business; and
(2) on an entity by delivering or mailing a duly executed copy
of the subpoena or summons to an individual for which service
would be appropriate in a civil suit under state law.
(b) Proof of service of process under this section consists of:
(1) a verified return showing the manner of service; or
(2) if the service is made by registered or certified mail,
return receipt requested, the return receipt.
(c) By acting as an athlete agent in this state, a nonresident
appoints the secretary of state as the nonresident's agent for
service of process in a civil action in this state related to an
act by the person as an athlete agent.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
Amended by Acts 2003, 78th Leg., ch. 821, Sec. 12, eff. Sept. 1,
2003.
Sec. 2051.403. ENFORCEMENT OF SUBPOENA AND SUMMONS. (a) The
secretary of state shall refer a person who fails or refuses to
comply with a subpoena or summons issued by the secretary under
Section 2051.401 to the attorney general for enforcement.
(b) On receipt of a referral under Subsection (a), the attorney
general may apply to a district court of Travis County for an
order requiring compliance.
(c) On receipt of an application for an order under Subsection
(b), a district court:
(1) shall order compliance if the court determines that good
cause exists for the issuance of the subpoena or summons; and
(2) may modify those requirements of the subpoena or summons
that the court determines are unreasonable.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
Sec. 2051.404. INTERROGATORIES. (a) Except as provided by
Subsection (b), the secretary of state may serve interrogatories
on an athlete, compliance coordinator, or any person subject to
this chapter, or an officer, director, partner, or associate of
the person, if the interrogatories are reasonable and necessary
to conduct an investigation under this chapter.
(b) The secretary may not serve interrogatories on an athlete
who is not represented by an attorney.
(c) Interrogatories served under Subsection (a) must be
answered:
(1) completely;
(2) in writing;
(3) under oath;
(4) not later than the 30th day after the date the
interrogatories are mailed, or within a time period determined by
the secretary; and
(5) by the individual to whom the interrogatories are directed
or, if the interrogatories are directed to an entity, by an
authorized representative of the entity.
(d) If the answers to interrogatories served under Subsection
(a) disclose a violation of this chapter, the secretary shall
take disciplinary action as provided by Section 2051.405.
(e) The interrogatories and answers to the interrogatories are:
(1) confidential and not open to public inspection, except by a
court order; and
(2) exempt from disclosure under Chapter 552, Government Code.
(f) The secretary may disclose confidential information to a
governmental authority or a quasi-governmental authority.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
Sec. 2051.405. DISCIPLINARY PROCEDURES; INJUNCTIONS. (a) If
the secretary of state determines that a person has violated this
chapter, the secretary shall:
(1) refer the violation to the attorney general for prosecution;
and
(2) take appropriate disciplinary action, including:
(A) denying an application for registration; or
(B) suspending or revoking a certificate of registration.
(b) If the secretary determines that a person is violating or is
threatening to violate this chapter, the secretary or the
attorney general may file suit in district court in Travis County
to enjoin the violation or threatened violation.
(c) Judicial review of a denial, suspension, revocation, or
other disciplinary action taken under Subsection (a) is by trial
de novo and is subject to Section 2001.173, Government Code.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
SUBCHAPTER J. ADMINISTRATIVE PENALTY
Sec. 2051.451. ADMINISTRATIVE PENALTY. (a) If the secretary of
state determines that a person regulated under this chapter has
violated this chapter or a rule adopted under this chapter in a
manner that constitutes a ground for disciplinary action under
Section 2051.405, the secretary may assess an administrative
penalty against the person as provided by this subchapter.
(b) The secretary shall determine the amount of a penalty
assessed under Subsection (a), except that the amount may not
exceed $25,000.
(c) In determining the amount of a penalty under Subsection (b),
the secretary shall consider the seriousness of the violation.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
Sec. 2051.452. INVESTIGATION AND PRELIMINARY REPORT. (a) If,
after examining a possible violation, including facts relating to
the violation, the secretary of state determines that a person
has committed a violation of this chapter, the secretary shall
issue a preliminary report stating:
(1) the facts on which the determination is based; and
(2) that an administrative penalty will be imposed, including
the amount of the penalty.
(b) The secretary shall, not later than the 10th day after the
date a preliminary report is issued under Subsection (a), send to
the person who is the subject of the report:
(1) a copy of the report; and
(2) notice that the person may request a hearing under Section
2051.453.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
Sec. 2051.453. PAYMENT OR REQUEST FOR HEARING. (a) A person
who is the subject of a preliminary report issued under Section
2051.452 shall, not later than the 20th day after the date the
report is sent:
(1) pay the administrative penalty to the secretary of state; or
(2) request in writing from the secretary a hearing relating to:
(A) the alleged violation; or
(B) the amount of the penalty.
(b) A person who fails to pay the penalty or request a hearing
as required by Subsection (a) waives the right to request a
hearing under this chapter.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
Sec. 2051.454. HEARING. (a) If the secretary of state
determines at a hearing conducted under Chapter 2001, Government
Code, that a person has violated this chapter, the secretary
shall:
(1) notify the person in writing of:
(A) the secretary's findings; and
(B) the amount of the administrative penalty; and
(2) enter an order requiring the person to pay the penalty.
(b) A person shall, not later than the 30th day after receiving
notice under Subsection (a):
(1) pay the penalty to the secretary; or
(2) forward the penalty to the secretary for deposit in an
escrow account and request judicial review of:
(A) the secretary's findings; or
(B) the amount of the penalty.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
Sec. 2051.455. JUDICIAL REVIEW. If judicial review requested
under Section 2051.454 reveals that a person has not violated
this chapter or that the administrative penalty assessed against
a person should be reduced, the secretary of state shall, not
later than the 30th day after the date the judicial determination
becomes final, return the appropriate amount of the penalty to
the person.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
Sec. 2051.456. RECOVERY OF ADMINISTRATIVE PENALTY. On request
by the secretary of state, the attorney general may file suit
against a person to recover a penalty assessed under Section
2051.451.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
SUBCHAPTER K. CRIMINAL PENALTY
Sec. 2051.501. CRIMINAL OFFENSE. (a) An athlete agent commits
an offense if the agent intentionally or knowingly violates this
chapter or a rule under this chapter.
(b) An offense under this section is a Class A misdemeanor.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
SUBCHAPTER L. CIVIL SUIT BY INSTITUTION OF HIGHER EDUCATION
Sec. 2051.551. CIVIL SUIT. (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.
(b) A cause of action under 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.
(d) This chapter does not restrict the rights, remedies, or
defense of any person under any other law.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
Amended by Acts 2003, 78th Leg., ch. 821, Sec. 13, eff. Sept. 1,
2003.
Sec. 2051.552. ADVERSELY AFFECTED. 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.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
Sec. 2051.553. RECOVERY. 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.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.