HBA-NRS H.B. 1773 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1773 By: Brimer Licensing & Administrative Procedures 3/1/2001 Introduced BACKGROUND AND PURPOSE The Occupations Code contains provisions relating to the regulation of athlete agents. House Bill 1773 modifies current law relating to athlete agents, including provisions relating to the registration of athlete agents, contracts, and civil suits to promote uniformity of law among Texas and other states that have enacted law regarding athlete agents. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 1773 amends the Occupations Code relating to the regulation of athlete agents (agents). The bill provides that consideration must be given to the need to promote uniformity of law among states that have enacted similar law pertaining to agents(Sec. 2051.006). Before the issuance of a certificate of registration to an agent the bill authorizes a person to act as an agent in this state for all purposes except signing an agent contract, if an athlete or a person acting on behalf of the athlete initiates communication with the person and within seven days after the date of the initial act as an agent, the person submits an application for registration. Except as provided above, the bill prohibits a person from acting or representing himself or herself as an agent without a certificate of registration. The bill removes the provision that prohibits an unregistered agent from contacting an athlete while the athlete is eligible to participate in intercollegiate sports contests or entering into a contract with an athlete (Sec. 2051.101). The bill sets forth that an applicant for registration as an agent must provide specified information. The bill sets forth provisions relating to a person seeking certification as an agent who holds a certification of registration or license as an agent in another state (Sec. 2051.102). The bill authorizes the secretary of state to deny an application for registration if the secretary of state determines the applicant has engaged in certain conduct that has a significant adverse effect on the applicant's fitness to act as an agent. The bill also requires the secretary of state to consider how recently the conduct occurred, the nature of the conduct and the context in which it occurred, and any other relevant conduct of the applicant in making such a determination (Sec. 2051.105). The bill authorizes a person who has submitted an application for renewal of registration or licensure as an agent in another state to submit a copy of the application and certificate of registration or licensure from the other state instead of submitting a renewal application. The bill requires the secretary of state to accept the application for renewal from the other state as an application for renewal in this state if the application to the other state meets certain criteria (Sec. 2051.108). The bill provides that an agent contract or a financial services contract must contain specified information and requires the agent to give a signed copy of the contract to the athlete at the time the contract is signed (Sec. 2051.203). The bill modifies the contents of the notice included within an agent contract or a financial services contract (Sec. 2051.204). The bill prohibits an agent from specified activities and requires the agent to maintain a record of contracts entered into and certain costs incurred by the agent (Secs. 2051.351 and 2051.352). The bill provides that by acting as an 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 agent (Sec. 2051.402). The bill provides that a cause of action under provisions relating to a civil suit does not accrue until an institute of higher education discovers or by the exercise of reasonable diligence would have discovered the violation by the agent or former athlete. In addition, the bill provides that any liability of the agent or the former athlete is several and not joint and that provisions relating to agents do not restrict the rights, remedies, or defense of any person under any other law (Sec. 2051.551). EFFECTIVE DATE September 1, 2001. A person who submits application for registration as an athlete agent that is pending on September 1, 2001, must resubmit an application.