BILL ANALYSIS
SB 1098
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Date of Hearing: August 4, 2010
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
SB 1098 (Corbett) - As Amended: June 22, 2010
Policy Committee: Arts Vote:7-1
Judiciary 8-2
Urgency: No State Mandated Local Program:
Yes Reimbursable: No
SUMMARY
This bill, effective July 1, 2011, replaces existing state law
governing athlete agents with the Uniform Athlete Agent Act
(UAAA) adopted by the National Conference of Commissioners on
Uniform State Laws. Specifically, this bill:
1)Requires athlete agents, as defined, to register with the
Department of Industrial Relations (DIR) and to renew
registration every two years.
2)Authorizes DIR to suspend, revoke, or refuse to renew
registration for specified conduct that justifies denial of
registration.
3)Requires an athlete agent to submit specified information to
the DIR regarding the agent's background, criminal and
disciplinary record, training, experience and education as an
athlete agent.
4)Allows the DIR to assess a civil penalty against an athlete
agent not to exceed $25,000 for violation of the UAAA.
5)Creates a misdemeanor, punishable by a fine of $25,000 and/or
up to one year in jail, for athlete agents violating specified
provisions of the UAAA.
6)Authorizes the DIR, effective January 1, 2012, to assess a
civil penalty of up to $25,000 for violations of the UAAA.
7)Authorizes the DIR to establish a registration and renewal fee
sufficient to cover costs for administering the act. Fee
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revenues are subject to appropriation by the Legislature.
8)Requires the Director of Finance to approve a loan from the
Labor Enforcement and Compliance Fund for the registration
program start-up costs, and requires this fund to be repaid,
including interest, by July 2014 from registration fee
revenues.
FISCAL EFFECT
1)Ongoing special fund costs of about $370,000 for four staff
positions, operating costs, investigations and administrative
hearings.
2)One-time special fund costs of about $110,000 for computer
programming.
3)Revenues from registration fees and renewals would support the
above costs including repaying any start-up loan. Assuming 300
new registrants in 2011-12, 400 in 2012-13, 500 new and
renewals in 2013-14 and thereafter, registration fees would be
$1,800 in 2011-12, $1,250 in 2012-13, and $1,000 ongoing.
COMMENTS
1)Background . The Miller-Ayala Athlete Agents Act (Chapter 857,
Statutes of 1996) enacted a comprehensive set of provisions
governing the conduct and practice of individuals working as
athlete agents. One of the main criticisms of the
Miller-Ayala Act was that it did not establish a registration
program whereby athlete agents are required to submit and
renew an application. Instead, Miller-Ayala simply required
the filing of information regarding the background and
business practices of the athlete agent with the Secretary of
State. According to the Secretary's Special Filing Unit, 403
agents or agent companies have filed information.
2)Purpose . This bill enacts the UAAA, which creates a
nationally uniform state-registration system for sports agents
who recruit on college campuses. In 2000, the National
Conference of Commissioners on Uniform State Laws-in response
to concerns regarding inappropriate recruiting and that
inconsistent state laws made it difficult for athlete agents
practicing in several state to be certain they were comply
with different state laws-completed a three-year effort to
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draft the UAAA. Since that time, 38 states have adopted the
law, which is pending in three additional states, including
California with SB 1098. According to the author, this bill is
thus needed to bring the state law in this area into
conformance with most of the rest of the country. Under the
bill, the DIR will have the authority to review a potential
registrant agent's business and criminal history disclosures
and make a determination as to whether a person is unsuitable
to practice as an agent in California. The department will
also have the authority to suspend or revoke a license and to
assess civil penalties for misconduct.
3)Opposition . The DIR believes that the bill would add duties
"outside of an employment context as a contract between and
athlete agent and a student or professional athlete does not
involve an employer-employee relationship."
In response, the author points out that talent agents, who
enter into similar contractual relationships with clients, are
currently regulated by the DIR.
4)Prior Legislation . This bill is substantially similar to SB
694 (Sher) of 2001 and SB 1652 (Sher) of 2002, both of which
were vetoed by then-Governor Davis.
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081