Substitute House Bill No. 5127
          Substitute House Bill No. 5127

              PUBLIC ACT NO. 97-120


AN ACT CONCERNING AGENTS FOR STUDENT ATHLETES.


    Be  it  enacted  by  the  Senate  and House of
Representatives in General Assembly convened:
    Section  1.  Section  20-553  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    As   used   in   sections  20-553  to  20-558,
inclusive, AS AMENDED BY THIS ACT:
    (1)   "Athlete"   means   an  individual  [at]
ENROLLED IN an  institution  of  higher  education
[located in this state] OR ATTENDING GRADES ELEVEN
OR  TWELVE  IN  ANY  SCHOOL  who  engages  in,  is
eligible  to  engage in, or may, WITHIN TWO YEARS,
become eligible to engage in  any  intercollegiate
sporting  event,  contest,  exhibition or program,
provided  the  individual  has  never   signed   a
contract  of  employment  or a contract for future
athletic services with a professional sports team.
"Employment   with  a  professional  sports  team"
includes the execution by an athlete of a personal
services  contract  with  the owner or prospective
owner  of  a  professional  sports  team  for  the
purpose of future athletic services;
    (2) "Athlete agent"  means  a  person who, for
compensation, directly or  indirectly  recruits or
solicits IN THIS STATE an athlete to enter into an
agent  contract, financial  services  contract  or
professional services contract with that person or
who, for a  fee,  procures  or offers, promises or
attempts IN THIS STATE to obtain employment for an
athlete with a  professional  sports  team or as a
professional  athlete,  but  does  not  include  a
spouse, parent or sibling of the athlete;
    (3)   "Agent   contract"  means  any  oral  or
written  contract  or  agreement  under  which  an
athlete  authorizes  an athlete agent to negotiate
or solicit on behalf of the athlete  with  one  or
more  professional sports teams for the employment
of the  athlete  by  such  team  or  teams  or  to
negotiate  or solicit on behalf of the athlete for
the employment of the athlete  as  a  professional
athlete;
    (4)  "Financial  services  contract" means any
contract  or  agreement  under  which  an  athlete
authorizes  an  athlete agent to provide financial
services for the athlete, including the making and
execution   of   investment  and  other  financial
decisions by the athlete agent on  behalf  of  the
athlete;
    (5)  "Professional  services  contract"  means
any contract or agreement  pursuant  to  which  an
athlete   is  employed  by  or  agrees  to  render
services as a player on a professional sports team
or as a professional athlete; and
    (6)   "Immediate   family"  means  a  person's
spouse,  child,  parent,  stepparent,  brother  or
sister.
    Sec.   2.   Section   20-554  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    (a)  No  person  shall act as an athlete agent
without   first   obtaining   a   certificate   of
registration  from  the  Commissioner  of Consumer
Protection.
    (b)  Each  application  for  a  certificate of
registration   shall   be   accompanied    by    a
registration  fee  of  one  hundred  dollars. Such
certificate of registration shall be valid for one
year.  The  fee for renewal of such certificate of
registration shall be one hundred dollars.
    (c)  ANY AGENT CONTRACT BETWEEN AN ATHLETE AND
AN ATHLETE AGENT MAY BE CANCELLED BY  THE  ATHLETE
NOT LATER THAN SIX BUSINESS DAYS AFTER THE DATE ON
WHICH  THE  ATHLETE  SIGNED   THE   CONTRACT,   IN
ACCORDANCE   WITH   SUCH   REQUIREMENTS   AS   THE
COMMISSIONER MAY PRESCRIBE BY  REGULATION  ADOPTED
UNDER  SECTION  20-556, AS AMENDED BY SECTION 3 OF
THIS ACT.
     (d)   EACH   AGENT   CONTRACT   OR  FINANCIAL
SERVICES CONTRACT SHALL INCLUDE A SCHEDULE OF FEES
THAT  THE ATHLETE AGENT MAY CHARGE THE ATHLETE AND
A DESCRIPTION OF THE VARIOUS PROFESSIONAL SERVICES
TO BE RENDERED IN RETURN FOR EACH FEE. THE ATHLETE
AGENT MAY IMPOSE FEES UNDER ANY SUCH CONTRACT ONLY
IN  ACCORDANCE  WITH  SUCH  SCHEDULE.  THE ATHLETE
AGENT MAY MAKE CHANGES IN SUCH SCHEDULE  BUT  SUCH
CHANGES  SHALL  NOT  BECOME  EFFECTIVE  UNTIL  THE
SEVENTH DAY AFTER THE DATE ON WHICH A COPY OF  THE
CONTRACT CONTAINING SUCH CHANGES IS FILED WITH THE
DEPARTMENT OF CONSUMER PROTECTION.
    (e)  THE  TIME,  PLACE  AND  DURATION  OF  ANY
INTERVIEW BETWEEN AN  ATHLETE AND AN ATHLETE AGENT
SHALL BE IN  ACCORDANCE WITH ANY POLICIES THAT MAY
BE  ADOPTED OR  FOLLOWED  BY  THE  INSTITUTION  OR
SCHOOL IN WHICH  THE  ATHLETE IS ENROLLED. AS USED
IN   THIS  SUBSECTION,   "INTERVIEW"   MEANS   ANY
FACE-TO-FACE MEETING CONDUCTED  FOR THE PURPOSE OF
RECRUITING OR SOLICITING  AN  ATHLETE (1) TO ENTER
INTO  AN  AGENT   CONTRACT,   FINANCIAL   SERVICES
CONTRACT OR PROFESSIONAL SERVICES CONTRACT, OR (2)
FOR EMPLOYMENT WITH  A PROFESSIONAL SPORTS TEAM OR
AS A PROFESSIONAL ATHLETE.
    Sec.   3.   Section   20-556  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    (a)  The  Commissioner  of Consumer Protection
shall adopt regulations, in  accordance  with  the
provisions    of    chapter   54,   to   establish
REQUIREMENTS FOR the registration  AND  REGULATION
of athlete agents.
    (b)  The  regulations   adopted   pursuant  to
subsection (a) of  this section shall include, BUT
NOT BE LIMITED  TO:  (1) Qualifications of athlete
agents; (2) a  registration  procedure for athlete
agents; (3) bond  requirements for athlete agents;
(4)  form  requirements   for   agent   contracts,
financial  services  contracts   and  professional
services  contracts,  INCLUDING  REQUIREMENTS  FOR
ATHLETE AGENT FEE  SCHEDULES;  (5) limitations and
conditions on athlete  agent  communications  with
athletes,   including,   but   not   limited   to,
advertising  and  interviewing;   (6)   guidelines
regarding  the  suspension  and  revocation  of  a
certificate of registration  as  an athlete agent;
(7) LIMITATIONS ON FEES OR OTHER COMPENSATION THAT
MAY  BE COLLECTED  BY  ATHLETE  AGENTS,  INCLUDING
LIMITATIONS ON THE TRANSFER OF INTERESTS OR RIGHTS
TO PARTICIPATE IN  PROFITS MADE BY ATHLETE AGENTS;
and [(7)] (8)  any other reasonable regulations as
the commissioner may  deem  necessary or desirable
to carry out  and  enforce  the  [registration  of
athlete agents] PROVISIONS  OF  THIS  CHAPTER,  AS
AMENDED BY THIS ACT.
    Sec. 4. Section 20-557 of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    (a)   (1)   The   Commissioner   of   Consumer
Protection  may, after  notice  and  conducting  a
hearing  in  accordance  with  the  provisions  of
chapter 54, revoke  or  suspend any certificate of
registration issued pursuant to sections 20-553 to
20-558, inclusive, AS  AMENDED  BY THIS ACT, for a
violation of any provision of said sections or any
regulation adopted pursuant  to section 20-556, AS
AMENDED BY SECTION 3 OF THIS ACT.
    (2) THE COMMISSIONER  SHALL  REVOKE  ANY  SUCH
CERTIFICATE OF REGISTRATION HELD BY ANY PERSON WHO
IS CONVICTED UNDER SUBSECTION (d) OF THIS SECTION.
    (3)   ANY   PERSON    WHOSE   CERTIFICATE   OF
REGISTRATION IS REVOKED  UNDER THIS SUBSECTION MAY
SUBMIT AN APPLICATION  FOR  A  NEW  CERTIFICATE OF
REGISTRATION NOT LESS THAN ONE YEAR AFTER THE DATE
OF THE FINAL  DECISION IMPOSING SUCH REVOCATION OR
THE JUDGMENT AFFIRMING SUCH DECISION.
    (b) The Commissioner  of  Consumer  Protection
may, after notice  and  conducting  a  hearing  in
accordance  with the  provisions  of  chapter  54,
ORDER RESTITUTION OR  impose  a civil penalty, [of
not more than one thousand dollars] OR BOTH, for a
violation of any  provision  of sections 20-553 to
20-558, inclusive, AS  AMENDED BY THIS ACT, or any
regulation adopted pursuant  to section 20-556, AS
AMENDED  BY SECTION  3  OF  THIS  ACT.  ANY  CIVIL
PENALTY IMPOSED BY  THE  COMMISSIONER  UNDER  THIS
SUBSECTION SHALL NOT  EXCEED  ONE THOUSAND DOLLARS
PLUS THE AMOUNT  OF PROFITS DERIVED AS A RESULT OF
THE   VIOLATION   MINUS   ANY   AMOUNT   PAID   AS
RESTITUTION.
    (c) A violation  of  any provision of sections
20-553 to 20-558,  inclusive,  AS  AMENDED BY THIS
ACT, or any regulation adopted pursuant to section
20-556, AS AMENDED BY SECTION 3 OF THIS ACT, shall
be deemed an  unfair  or  deceptive trade practice
under subsection (a) of section 42-110b.
    (d) IN ADDITION  TO  ANY OTHER REMEDY PROVIDED
FOR IN THIS  SECTION,  ANY PERSON WHO VIOLATES ANY
PROVISION OF SECTIONS 20-553 TO 20-558, INCLUSIVE,
AS AMENDED BY  THIS ACT, OR ANY REGULATION ADOPTED
PURSUANT TO SECTION  20-556, AS AMENDED BY SECTION
3 OF THIS  ACT,  SHALL  BE  GUILTY  OF  A  CLASS B
MISDEMEANOR.
    Sec. 5. This  act  shall  take effect from its
passage, except that  sections  1 and 4 shall take
effect October 1, 1997.

Approved June 6, 1997