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.