BILL ANALYSIS
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UNFINISHED BUSINESS
Bill No: SB 1652
Author: Sher (D), et al
Amended: 6/12/02
Vote: 21
SENATE BUSINESS & PROFESSIONS COMMITTEE : 5-0, 4/8/02
AYES: Figueroa, Johannessen, Machado, Murray, O'Connell
SENATE APPROPRIATIONS COMMITTEE : 10-1, 5/23/02
AYES: Alpert, Bowen, Burton, Escutia, Johannessen,
Karnette, McPherson, Murray, Perata, Speier
NOES: Johnson
SENATE FLOOR : 23-9, 5/29/02
AYES: Alarcon, Alpert, Burton, Chesbro, Costa, Dunn,
Escutia, Figueroa, Karnette, Kuehl, Machado, McPherson,
Murray, O'Connell, Peace, Perata, Poochigian, Romero,
Scott, Sher, Soto, Torlakson, Vasconcellos
NOES: Ackerman, Brulte, Haynes, Johnson, Knight,
McClintock, Monteith, Morrow, Oller
ASSEMBLY FLOOR : 48-31, 8/26/02 - See last page for vote
SUBJECT : Athlete agents
SOURCE : Author
DIGEST : This bill conforms existing law regarding the
regulation of athlete agents with that of a Uniform Athlete
Agent Act.
CONTINUED
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Assembly Amendments require the loan for startup costs to
be repaid on or before July 1, 2006, together with interest
calculated at the rate that is equal to that earned by
moneys invested in the Pooled Money Investment Account.
ANALYSIS : This bill conforms existing law regarding the
regulation of athlete agents to a Uniform Athlete Agent Act
(UAAA). Specifically, this bill:
1. Makes a title change and repeals existing law with the
insertion of the Uniform Athlete Agent Act.
2. Makes conforming changes to definitions of athlete
agent, negotiate, agent contract, student athlete and
definitions regarding specified contracts.
3. Defines "contact" as a communication, direct or
indirect, between an athlete agent and a student or
professional athlete, to recruit or solicit the student
or professional athlete to enter into an agency
contract.
4. Defines "intercollegiate sport" as a sport played at the
collegiate level for which eligibility requirements for
participation by a student athlete are established by a
national association for the promotion or regulation of
collegiate athletics.
5. Requires an athlete agent to obtain a certificate of
registration from the Department of Industrial Relations
(department) rather than file with the Secretary of
State.
6. Specifies that the agent must submit an application for
registration within seven days after an initial act as
an athlete agent or a contract resulting from violation
of this requirement will be void.
7. Requires the athlete agent to submit specified
information to the department regarding his or her
background, criminal and disciplinary record, training,
experience and education they have as an athlete agent.
8. Requires the athlete agent to disclose the fact of
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registration to a student or professional athlete and
where information may be obtained regarding the agent.
9. Specifies that an application for a certificate of
registration are public records.
10.Allows the department to refuse to issue a certificate
of registration under specific circumstances.
11.Requires renewal of registration every two years.
12.Allows the department to issue a temporary certificate
of registration while an application for registration
or renewal or registration is pending.
13.Specifies that the department may suspend, revoke, or
refuse to renew a registration for conduct specified and
shall provide notice and an opportunity for a hearing in
accordance with current law.
14.Specifies what an agency contract shall state or contain
with a prominent notice to students of what the
implications are to signing the contract and voids a
contract that does not conform to any other requirements
within the UAAA.
15.Provides for notice within 72 hours to the athletic
director of the educational institution upon entering
into an agency contract and the ability of the student
athlete to cancel a contract within 14 days.
16.Delineates what conduct of the athlete agent would
subject the agent to criminal and civil penalties and
allows a court to suspend or revoke the registration of
the agent for criminal violations as specified.
17.Provides an educational institution with a right of
action against an athlete agent for damages caused by
violation of this Act.
18.Allows the department to assess a civil penalty against
an athlete agent not to exceed twenty-five thousand
dollars ($25,000) for violation of this Act.
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19.Creates the Athlete Agent Registration Fund and allows
for the Department to establish by regulation a fee to
fund the costs of the registration program.
20.Requires the Director of Finance to approve a loan from
the General Fund to the department for startup costs, to
be repaid by fees.
21.Requires athlete agents to maintain certain records.
22.Incorporates other technical and substantive provisions
from the Miller-Ayala Athlete Agents Act.
Comments :
1. Purpose : According to the author and proponents, this
bill creates a national uniform registration system for
persons seeking to represent student athletes (with
professional eligibility) for professional sports
services and endorsements. It mandates disclosure
requirements, contract warnings, and protective and
enforcement provisions, and provides for nationally
uniform applications and reciprocal filings.
As indicated by the author and proponents, the existing
Miller-Ayala Athlete Agents Act contains many of the
same provisions as the UAAA, but does not allow
registering state agencies to investigate agent filings
or take administrative action thereon. Also, existing
law does not allow for a uniform national registration
system, something that makes sense in an industry that
clearly operates on a multi-state basis. However, it is
intent of the author and proponents to incorporate
all-important aspects of the current Miller-Ayala
Athlete Agents Act, which deals with both student
athletes and professional athletes, with that of the
proposed UAAA.
Previous Legislation - SB 694 (Sher) . SB 1652 is a
reintroduction of SB 694 from last year which was
passed by both the Senate and the Assembly, but was
vetoed by the Governor.
In his veto message the Governor indicated that the
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program should be located under the Department of
Industrial Relations rather than with the Department of
Consumer Affairs as originally proposed. The Governor
stated as follows:
"I would be open to considering a bill that is
patterned after the manner in which the State
oversees the activities of talent agents. Moreover,
I am concerned about the high cost of creating a new
program. Since the Department of Industrial
Relations already regulates talent agents, I believe
this program should be at the Department of
Industrial Relations so that they can set
appropriate registration fees and administer the
program efficiently."
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: Yes
According to Senate Appropriations Committee:
Fiscal Impact (in thousands)
Major Provisions 2002-03 2003-04 2004-05
Fund
Repeal of Miller-Ayala
Athlete Agent Act Minor cost savingsSpecial*
Personnel 300 300Special**
Registration fees and
penalties Unknown revenuesSpecial**
* Business Fees Fund
** Athlete Agent Registration Fund, created in bill
Recent amendments indicate the program's start-up costs are to be
paid by a loan from the General Fund to be repaid by fees
established by the department.
Comments :
SB 1652 would require athlete agents to register with the
Department of Industrial Relations (DIR), prohibit any
person from acting as an athlete agent absent either this
registration or one from another state whose policies
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conform with the UAAA, and specify the conditions under
which registration may be denied. The bill requires
contracts between athletes and their agents to contain
certain provisions, requires DIR to establish registration
fees that would offset the program's costs, and delineates
protocols for agent notification of schools and athletes.
SB 1652 further authorizes DIR to assess a civil penalty of
up to $25,000 for violations of the UAAA. The bill creates
the Athlete Agent Registration Fund for deposit of
authorized fees and penalties.
SUPPORT : (Verified 8/27/02)
American Bar Association
California State University (CSU)
National Collegiate Athletic Association
National Conference of Commissioners on Uniform State
Laws
Pacific-10 Conference
ARGUMENTS IN SUPPORT : The National Collegiate Athletic
Association (NCAA) supports the adoption of the UAAA in
every state. They point out that there can be significant
damage resulting from the impermissible and oftentimes
illegal practices of some athletic agents. Violations of
the NCAA agent legislation impact the eligibility of
student-athletes for further participation in NCAA
competition. Violations may also result in harsh
penalties on the team and university. The UAAA is an
important tool in regulating the activities of athlete
agents and protecting NCAA student-athletes and member
institutions.
It is the opinion of the Pacific-10 Conference that the
passage of the UAAA will clarify and make more readily
understandable the rules and regulations involving
athletic agents acting in the State of California. Said
passage would not only protect its student athletes, and
the colleges and universities which many of them hope to
attend, it would give uniformity to the various state laws
and, in fact, be an aid to the athlete agents who would be
affected by its passage.
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The California State University (CSU) indicates that the
practices of a minority of athlete agents have caused
serious problems for student athletes and education
institutions. Adoption of the UAAA will ensure greater
protections for student athletes and educational
institutions, while providing a more manageable and
cost-efficient regulatory scheme for athlete agents.
ASSEMBLY FLOOR :
AYES: Alquist, Calderon, Canciamilla, Cardenas, Cardoza,
Cedillo, Chan, Chavez, Chu, Cohn, Corbett, Correa, Diaz,
Dutra, Firebaugh, Florez, Frommer, Goldberg, Havice,
Hertzberg, Horton, Jackson, Keeley, Kehoe, Koretz, Liu,
Longville, Lowenthal, Matthews, Migden, Nakano, Nation,
Negrete McLeod, Oropeza, Papan, Pavley, Reyes, Salinas,
Shelley, Simitian, Steinberg, Strom-Martin, Thomson,
Vargas, Washington, Wayne, Wiggins, Wesson
NOES: Aanestad, Ashburn, Bates, Bogh, Briggs, Bill
Campbell, John Campbell, Cogdill, Cox, Daucher,
Dickerson, Harman, Hollingsworth, Kelley, La Suer, Leach,
Leonard, Leslie, Maddox, Maldonado, Mountjoy, Robert
Pacheco, Rod Pacheco, Pescetti, Richman, Runner,
Strickland, Wright, Wyland, Wyman, Zettel
CP:jk 8/27/02 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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