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statutes is repealed and the following is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