H 3304 General Bill, By Harrison

Similar(S 193)
 A BILL TO AMEND CHAPTER 102, TITLE 59, CODE OF LAWS OF SOUTH CAROLINA, 1976,
 RELATING TO ATHLETE AGENTS AND STUDENT ATHLETES, SO AS TO REWRITE THE CHAPTER
 AND ENACT THE "UNIFORM ATHLETE AGENTS ACT OF 2001", TO PROVIDE FOR DEFINITIONS
 AND FOR APPLICATIONS, REGISTRATION, AND RENEWAL OF REGISTRATION FOR ATHLETE
 AGENTS, TO PROVIDE FOR SERVICE OF PROCESS UPON INDIVIDUALS ACTING AS ATHLETE
 AGENTS IN THIS STATE, TO PROVIDE FOR THE DUTIES OF THE SECRETARY OF STATE
 RELATING TO APPLICATIONS FOR REGISTRATION AND ISSUANCE OF TEMPORARY
 CERTIFICATES AND CERTIFICATES OF REGISTRATION TO ATHLETE AGENTS, AND FOR THE
 NON-RENEWAL, SUSPENSION, AND REVOCATION OF CERTIFICATES OF REGISTRATION AFTER
 NOTICE AND OPPORTUNITY FOR A HEARING, TO PROVIDE FOR WHAT AN AGENCY CONTRACT
 MUST STATE OR CONTAIN AND FOR A WARNING TO STUDENT ATHLETES OF CERTAIN RIGHTS
 AND CONSEQUENCES OF SIGNING AN AGENCY CONTRACT, TO PROVIDE FOR WHEN AN AGENCY
 CONTRACT IS VOIDABLE, AND FOR WHEN A STUDENT ATHLETE MAY CANCEL AN AGENCY
 CONTRACT, TO REQUIRE AN ATHLETE AGENT TO RETAIN CERTAIN RECORDS FOR FIVE YEARS
 AND PROVIDE FOR THE INSPECTION OF THOSE RECORDS, TO PROVIDE THAT AN ATHLETE
 AGENT MAY NOT MAKE CERTAIN REPRESENTATIONS OR FURNISH ANYTHING OF VALUE TO
 STUDENT ATHLETES WITH THE INTENT TO INDUCE A STUDENT ATHLETE TO ENTER INTO AN
 AGENCY CONTRACT, TO PROVIDE THAT AN EDUCATIONAL INSTITUTION HAS A RIGHT OF
 ACTION AGAINST AN ATHLETE AGENT OR FORMER STUDENT ATHLETE FOR DAMAGES CAUSED
 BY A VIOLATION OF THIS CHAPTER, AND TO PROVIDE FOR CIVIL AND CRIMINAL
 PENALTIES FOR CERTAIN VIOLATIONS OF THIS CHAPTER.

   01/23/01  House  Introduced and read first time HJ-8
   01/23/01  House  Referred to Committee on Judiciary HJ-9
   02/08/01  House  Committee report: Favorable with amendment
                     Judiciary HJ-2
   02/13/01  House  Debate interrupted HJ-36
   02/14/01  House  Amended HJ-16
   02/14/01  House  Read second time HJ-28
   02/15/01  House  Read third time and sent to Senate HJ-17
   02/20/01  Senate Introduced and read first time SJ-8
   02/20/01  Senate Referred to Committee on Judiciary SJ-8

Indicates New Matter

AMENDED

February 14, 2001

    H. 3304

S. Printed 2/14/01--H.

Read the first time January 23, 2001.

TO AMEND CHAPTER 102, TITLE 59, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ATHLETE AGENTS AND STUDENT ATHLETES, SO AS TO REWRITE THE CHAPTER AND ENACT THE "UNIFORM ATHLETE AGENTS ACT OF 2001", TO PROVIDE FOR DEFINITIONS AND FOR APPLICATIONS, REGISTRATION, AND RENEWAL OF REGISTRATION FOR ATHLETE AGENTS, TO PROVIDE FOR SERVICE OF PROCESS UPON INDIVIDUALS ACTING AS ATHLETE AGENTS IN THIS STATE, TO PROVIDE FOR THE DUTIES OF THE SECRETARY OF STATE RELATING TO APPLICATIONS FOR REGISTRATION AND ISSUANCE OF TEMPORARY CERTIFICATES AND CERTIFICATES OF REGISTRATION TO ATHLETE AGENTS, AND FOR THE NON-RENEWAL, SUSPENSION, AND REVOCATION OF CERTIFICATES OF REGISTRATION AFTER NOTICE AND OPPORTUNITY FOR A HEARING, TO PROVIDE FOR WHAT AN AGENCY CONTRACT MUST STATE OR CONTAIN AND FOR A WARNING TO STUDENT ATHLETES OF CERTAIN RIGHTS AND CONSEQUENCES OF SIGNING AN AGENCY CONTRACT, TO PROVIDE FOR WHEN AN AGENCY CONTRACT IS VOIDABLE, AND FOR WHEN A STUDENT ATHLETE MAY CANCEL AN AGENCY CONTRACT, TO REQUIRE AN ATHLETE AGENT TO RETAIN CERTAIN RECORDS FOR FIVE YEARS AND PROVIDE FOR THE INSPECTION OF THOSE RECORDS, TO PROVIDE THAT AN ATHLETE AGENT MAY NOT MAKE CERTAIN REPRESENTATIONS OR FURNISH ANYTHING OF VALUE TO STUDENT ATHLETES WITH THE INTENT TO INDUCE A STUDENT ATHLETE TO ENTER INTO AN AGENCY CONTRACT, TO PROVIDE THAT AN EDUCATIONAL INSTITUTION HAS A RIGHT OF ACTION AGAINST AN ATHLETE AGENT OR FORMER STUDENT ATHLETE FOR DAMAGES CAUSED BY A VIOLATION OF THIS CHAPTER, AND TO PROVIDE FOR CIVIL AND CRIMINAL PENALTIES FOR CERTAIN VIOLATIONS OF THIS CHAPTER.

    Amend Title To Conform

Be it enacted by the General Assembly of the State of South Carolina:

SECTION    1.    Chapter 102, Title 59 of the 1976 Code is amended to read:

    Athlete Agents and Student Athletes

    Section 59-102-10.    As used in this chapter:

    (1) "Agent contract" means a contract or agreement pursuant to which a student athlete authorizes an athlete agent to represent him in the marketing of his athletic ability or reputation in a sport.

    (2) "Athlete agent" means a person who, directly or indirectly, recruits or solicits a student athlete to enter into an agent contract, or who for a fee procures, offers, promises, or attempts to obtain employment for a student athlete with a professional sports team or as a professional athlete.

    (3) "Student athlete" means an athlete who practices for or otherwise participates in intercollegiate athletics at a college or university that is located in this State. This chapter may be cited as the 'Uniform Athlete Agents Act of 2001'.

    Section 59-102-20.    (A)    Each athlete agent shall register biennially with the Department of Consumer Affairs on forms to be provided by the department and, at the same time, pay to the department a registration fee of three hundred dollars, for which the department shall issue a certificate of authority entitling the holder to operate as an athlete agent for two years. The department may revoke or suspend the registration of an athlete agent for cause or for a violation of any provision of this chapter.

    (B)    When the business address of an athlete agent operating in this State is changed, the agent shall notify the department within thirty days after the change of address.

    (C) It is unlawful for a person to operate as an athlete agent unless he is registered as provided in this section. A person who violates this section is guilty of a felony and, upon conviction, must be punished by a fine of five thousand dollars or by imprisonment for five years, or both. In this chapter:

    (1)    'Agency contract' means an agreement in which a student athlete authorizes a person to negotiate or solicit on behalf of the student athlete a professional sports services contract or an endorsement contract.

    (2)    'Athlete agent' means an individual who enters into an agency contract with a student athlete or, directly or indirectly, recruits or solicits a student athlete to enter into an agency contract. The term includes an individual who represents to the public that the individual is an athlete agent. The term does not include a spouse, parent, sibling, grandparent, or guardian of the student athlete or an individual acting solely on behalf of a professional sports team or professional sports organization.

    (3)    'Athletic director' means an individual responsible for administering the overall athletic program of an educational institution or, if an educational institution has separately administered athletic programs for male students and female students, the athletic program for males or the athletic program for females, as appropriate.

    (4)    'Contact' means a communication, direct or indirect, between an athlete agent and a student athlete, to recruit or solicit the student athlete to enter into an agency contract.

    (5)    'Endorsement contract' means an agreement under which a student athlete is employed or receives consideration to use on behalf of the other party any value that the student athlete may have because of publicity, reputation, following, or fame obtained due to athletic ability or performance.

    (6)    'Intercollegiate sport' means 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.

    (7)    'Person' means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, government, governmental subdivision, agency, or instrumentality, public corporation, or any other legal or commercial entity.

    (8)    'Professional sports services contract' means an agreement under which an individual is employed, or agrees to render services, as a player on a professional sports team, with a professional sports organization, or as a professional athlete.

    (9)    'Record' means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.

    (10)    'Registration' means registration as an athlete agent pursuant to this chapter.

    (11)    'State' means the State of South Carolina when referring to this State or a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States when referring to any other state.

    (12)    'Student athlete' means an individual who engages in, is eligible to engage in, or may be eligible in the future to engage in any intercollegiate sport. If an individual is permanently ineligible to participate in a particular intercollegiate sport, the individual is not a student athlete for purposes of that sport.

    Section 59-102-30.    (A) A student athlete who is subject to the rules and regulations of the National Collegiate Athletic Association, the National Association for Intercollegiate Athletics, or the National Junior College Athletic Association, who has not completed his last intercollegiate contest including postseason games for the applicable sport, and who enters into an agent contract with an athlete agent or a contract pursuant to which an athlete is employed as a professional athlete, shall notify the athletic director or the president of the college or university in which he is enrolled and the Administrator of the Department of Consumer Affairs that he has entered into such a contract. Written notification of entering into a contract must be given before practicing for or participating in an athletic event on behalf of a college or university or within seventy-two hours after entering into the contract, whichever occurs first. A student athlete who fails to provide this notification is guilty of a misdemeanor and, upon conviction, must be punished by a fine of one thousand dollars or by imprisonment for one year, or both.

    (B) An athlete agent who enters into an agent contract with a student athlete who is subject to the rules and regulations of the National Collegiate Athletic Association, the National Association for Intercollegiate Athletics, or the National Junior College Athletic Association shall notify the athletic director or the president of the college or university in which the student athlete is enrolled and the Administrator of the Department of Consumer Affairs that the student athlete has entered into such a contract. Written notification of the contract must be given before the student athlete's practicing for or participating in an athletic event on behalf of a college or university or within seventy-two hours after entering into the contract, whichever occurs first. An athlete agent who fails to provide this notification is guilty of a felony and, upon conviction, must be punished by a fine of five thousand dollars or by imprisonment for five years, or both.

    (C) A student athlete or athlete agent who enters into a contract before October 1, 1990, is subject to the notification requirements of this section as of October 1, 1990. Thereafter, they are subject to these notification requirements immediately in the manner required by this section.

    (D) An agent contract between a student athlete and an athlete agent must have a notice printed near the space for the student athlete's signature which must contain the following statement in ten-point bold-faced type:

    "WARNING: IF YOU AS A STUDENT ATHLETE SIGN THIS CONTRACT, YOU MAY LOSE YOUR ELIGIBILITY TO COMPETE IN INTERCOLLEGIATE ATHLETICS. PURSUANT TO SOUTH CAROLINA LAW, YOU SHALL NOTIFY THE ATHLETIC DIRECTOR OR PRESIDENT OF YOUR COLLEGE OR UNIVERSITY AND THE ADMINISTRATOR OF THE DEPARTMENT OF CONSUMER AFFAIRS IN WRITING BEFORE PRACTICING FOR OR PARTICIPATING IN AN ATHLETIC EVENT ON BEHALF OF A COLLEGE OR UNIVERSITY OR WITHIN SEVENTY-TWO HOURS AFTER ENTERING INTO THIS CONTRACT, WHICHEVER OCCURS FIRST. FAILURE TO PROVIDE THIS NOTICE IS A CRIMINAL OFFENSE."

    (E) An agent contract entered into between a student athlete and an athlete agent who fails to provide the notification required by this section is void and unenforceable.

    (F) A student athlete or athlete agent who enters into an agent contract and fails to provide the notification required by this section is liable for damages to the college or university in which the student athlete is enrolled that result from the student athlete's subsequent ineligibility. In addition to damages, if any, awarded pursuant to this section, damages may be assessed in an amount equal to three times the value of the athletic scholarship furnished by the institution to the student athlete during the student athlete's period of eligibility.

    (G) Within ten days after the date on which the contractual relationship between the athlete agent and the student athlete arises or after notification of the contractual relationship is received by the athletic director or president of the college or university in which the student is enrolled and the Administrator of the Department of Consumer Affairs, whichever occurs later, the student athlete has the right to rescind the contract or any contractual relationship with the athlete agent by giving notice in writing of his intent to rescind. The rescission is effective upon repayment by the student athlete to the athlete agent of any monetary amounts paid to the student athlete by the athlete agent, exclusive of travel, lodging, meals, and entertainment, or reimbursement for these items, furnished by the athlete agent to the student athlete. The student athlete may not effect a waiver of his right to rescind, and an attempt to do so is prohibited and unenforceable.

    (H) Postdating of agent contracts is prohibited, and a postdated contract is void and unenforceable. Execution of a postdated contract is a violation of this chapter, and an athlete agent committing the violation is subject to the penalty provisions of Section 59-102-20(C). A student athlete committing the violation is subject to the penalty provisions of Section 59-102-30(A).

    (A)    By acting as an athlete agent in this State, a nonresident individual appoints the Secretary of State as the individual's agent for service of process in any civil action in this State related to the individual's acting as an athlete agent in this State.

    (B)    The Secretary of State may issue subpoenas for any material that is relevant to the administration of this chapter.

    Section 59-102-40. An agent may not:

    (1) publish or cause to be published false or misleading information or advertisements nor give any false information or make false promises to an athlete concerning employment;

    (2) accept as a client a student athlete referred by an employee of or a coach for a college or university located in this State in exchange for the rendition of free legal services, the rendition of legal services for a reduced fee, or any other consideration;

    (3) enter into an agreement, written or oral, by which the athlete agent offers anything of value to an employee of or a coach for a college or university located in this State in return for the referral of student athlete clients by that employee or coach;

    (4) offer anything of value to induce a student athlete to enter into an agreement by which the agent will represent the student athlete. Negotiations regarding the agent's fee is not considered an inducement;

    (5) conduct business as an athlete agent if his registration is suspended.    (A)    Except as otherwise provided in subsection (B), an individual may not act as an athlete agent in this State without holding a certificate of registration under Section 59-102-60 or 59-102-80.

    (B)    Before being issued a certificate of registration, an individual may act as an athlete agent in this State for all purposes except signing an agency contract, if:

        (1)    a student athlete or another person acting on behalf of the student athlete initiates communication with the individual; and

        (2)    within seven days after an initial act as an athlete agent, the individual submits an application for registration as an athlete agent in this State.

    (C)    An agency contract resulting from conduct in violation of this section is void and the athlete agent shall return any consideration received under the contract.

    Section 59-102-50.    Department of Consumer Affairs to promulgate regulations. The Department of Consumer Affairs may promulgate regulations necessary to implement and enforce this chapter.    (A)    An applicant for registration shall submit an application for registration to the Secretary of State in a form prescribed by the Secretary of State. An application filed under this section is a public record. The application must be in the name of an individual and, except as otherwise provided in subsection (B) signed or otherwise authenticated by the applicant under penalty of perjury and state or contain:

        (1)    the name of the applicant and the address of the applicant's principal place of business;

        (2)    the name of the applicant's business or employer, if applicable;

        (3)    any business or occupation engaged in by the applicant for the five years next preceding the date of submission of the application;

        (4)    a description of the applicant:

            (a)    formal training as an athlete agent;

            (b)    practical experience as an athlete agent; and

            (c)    educational background relating to the applicants activities as an athlete agent;

        (5)    the names and addresses of three individuals not related to the applicant who are willing to serve as references;

        (6)    the name, sport, and last known team for each individual for whom the applicant acted as an athlete agent during the five years next preceding the date of submission of the application;

        (7)    the names and addresses of all persons who are:

            (a)    with respect to the athlete agent's business if it is not a corporation, the partners, members, officers, managers, associates, or profit-sharers of the business; and

            (b)    with respect to a corporation employing the athlete agent, the officers, directors, and any shareholder of the corporation having an interest of five percent or greater;

        (8)    whether the applicant or any person named pursuant to item (7)    has been convicted of a crime that, if committed in this State, would be a crime involving moral turpitude or a felony, and identify the crime;

        (9)    whether there has been any administrative or judicial determination that the applicant or any person named pursuant to item (7) has made a false, misleading, deceptive, or fraudulent representation;

        (10)    any instance in which the conduct of the applicant or any person named pursuant to item (7) resulted in the imposition of a sanction, suspension, or declaration of ineligibility to participate in an interscholastic or intercollegiate athletic event on a student athlete or educational institution;

        (11)    any sanction, suspension, or disciplinary action taken against the applicant or any person named pursuant to item (7) arising out of occupational or professional conduct; and

        (12)    whether there has been any denial of an application for suspension, revocation of, or refusal to renew the registration or licensure of the applicant or any person named pursuant to item (7) as an athlete agent in any state.

    (B)    An individual who has submitted an application for, and holds a certificate of, registration or licensure as an athlete agent in another state, may submit a copy of the application and certificate in lieu of submitting an application in the form prescribed pursuant to subsection (A). The Secretary of State shall accept the application and the certificate from the other state as an application for registration in this State if the application to the other state:

        (1)    was submitted in the other state within six months next preceding the submission of the application in this State and the applicant certifies that the information contained in the application is current;

        (2)    contains information substantially similar to or more comprehensive than that required in an application submitted in this State; and

        (3)    was signed by the applicant under penalty of perjury.

    Section 59-102-60.    (A)    Except as otherwise provided in subsection (B), the Secretary of State shall issue a certificate of registration to an individual who complies with Section 59-102-50(A) or whose application has been accepted under Section 59-102-50(B).

    (B)    The Secretary of State may refuse to issue a certificate of registration if the Secretary of State determines that the applicant has engaged in conduct that has a significant adverse effect on the applicant's fitness to act as an athlete agent. In making the determination, the Secretary of State may consider whether the applicant has:

        (1)    been convicted of a crime that, if committed in this State, would be a crime involving moral turpitude or a felony;

        (2)    made a materially false, misleading, deceptive, or fraudulent representation in the application or as an athlete agent;

        (3)    engaged in conduct that would disqualify the applicant from serving in a fiduciary capacity;

        (4)    engaged in conduct prohibited by Section 59-102-140;

        (5)    had a registration or licensure as an athlete agent suspended, revoked, or denied or been refused renewal of registration or licensure as an athlete agent in any state;

        (6)    engaged in conduct the consequence of which was that a sanction, suspension, or declaration of ineligibility to participate in an interscholastic or intercollegiate athletic event was imposed on a student athlete or educational institution; or

        (7)    engaged in conduct that significantly adversely reflects on the applicant's credibility, honesty, or integrity.

    (C)    In making a determination under subsection (B), the Secretary of State shall consider:

        (1)    how recently the conduct occurred;

        (2)    the nature of the conduct and the context in which it occurred; and

        (3)    any other relevant conduct of the applicant.

    (D)    An athlete agent may apply to renew a registration by submitting an application for renewal in a form prescribed by the Secretary of State. An application filed under this section is a public record. The application for renewal must be signed by the applicant under penalty of perjury and must contain current information on all matters required in an original registration.

    (E)    An individual who has submitted an application for renewal of registration or licensure in another state, in lieu of submitting an application for renewal in the form prescribed pursuant to subsection (D), may file a copy of the application for renewal and a valid certificate of registration or licensure from the other state. The Secretary of State shall accept the application for renewal from the other state as an application for renewal in this State if the application to the other state:

        (1)    was submitted in the other state within six months next preceding the filing in this State and the applicant certifies the information contained in the application for renewal is current;

        (2)    contains information substantially similar to or more comprehensive than that required in an application for renewal submitted in this State; and

        (3)    was signed by the applicant under penalty of perjury.

    A certificate of registration or a renewal of a registration is valid for two years.

    Section 59-102-70.    (A) The Secretary of State may suspend, revoke, or refuse to renew a registration for conduct that would have justified denial of registration under Section 59-102-60(B).

    (B)    The Secretary of State may deny, suspend, revoke, or refuse to renew a certificate of registration or licensure only after proper notice and an opportunity for a hearing. The Administrative Procedures Act applies to this chapter.

    Section 59-102-80.    The Secretary of State may issue a temporary certificate of registration while an application for registration or renewal of registration is pending.

    Section 59-102-90.    An application for registration or renewal of registration must be accompanied by a fee in the following amount:

    (1)    five hundred dollars for an initial application for registration;

    (2)    three hundred dollars for an application for renewal of registration.

    Section 59-102-100.    (A)    An agency contract must be in a record, signed or otherwise authenticated by the parties.

    (B)    An agency contract must state or contain:

        (1)    the amount and method of calculating the consideration to be paid by the student athlete for services to be provided by the athlete agent under the contract and any other consideration the athlete agent has received or will receive from any other source for entering into the contract or for providing the services;

        (2)    the name of any person not listed in the application for registration or renewal of registration who will be compensated because the student athlete signed the agency contract;

        (3)    a description of any expenses that the student athlete agrees to reimburse;

        (4)    a description of the services to be provided to the student athlete;

        (5)    the duration of the contract; and

        (6)    the date of execution.

    (C)    An agency contract must contain, in close proximity to the signature of the student athlete, a conspicuous notice in boldface type in capital letters stating:

    'WARNING TO STUDENT ATHLETE IF YOU SIGN THIS CONTRACT:

        (1)    YOU MAY LOSE YOUR ELIGIBILITY TO COMPETE AS A STUDENT ATHLETE IN YOUR SPORT;

        (2)    IF YOU HAVE AN ATHLETIC DIRECTOR, WITHIN SEVENTY-TWO HOURS AFTER ENTERING INTO THIS CONTRACT, BOTH YOU AND YOUR ATHLETE AGENT MUST NOTIFY YOUR ATHLETIC DIRECTOR; AND

        (3)    YOU MAY CANCEL THIS CONTRACT WITHIN 14 DAYS AFTER SIGNING IT. CANCELLATION OF THIS CONTRACT MAY NOT REINSTATE YOUR ELIGIBILITY.'

    (D)    An agency contract that does not conform to this section is voidable by the student athlete. If a student athlete voids an agency contract, the student athlete is not required to pay any consideration under the contract or to return any consideration received from the athlete agent to induce the student athlete to enter into the contract.

    (E)    The athlete agent shall give a record of the signed or otherwise authenticated agency contract to the student athlete at the time of execution.

    Section 59-102-110.    (A)    Within seventy-two hours after entering into an agency contract or before the next scheduled athletic event in which the student athlete may participate, whichever occurs first, the athlete agent shall give notice in a record of the existence of the contract to the athletic director of the educational institution at which the student athlete is enrolled or the athlete agent has reasonable grounds to believe the student athlete intends to enroll.

    (B)    Within seventy-two hours after entering into an agency contract or before the next athletic event in which the student athlete may participate, whichever occurs first, the student athlete shall inform the athletic director of the educational institution at which the student athlete is enrolled that he or she has entered into an agency contract.

    Section 59-102-120.    (A)    A student athlete may cancel an agency contract by giving notice of the cancellation to the athlete agent in a record within 14 days after the contract is signed.

    (B)    A student athlete may not waive the right to cancel an agency contract.

    (C)    If a student athlete cancels an agency contract, the student athlete is not required to pay any consideration under the contract or to return any consideration received from the athlete agent to induce the student athlete to enter into the contract.

    Section 59-102-130.    (A)    An athlete agent shall retain the following records for a period of five years:

        (1)    the name and address of each individual represented by the athlete agent;

        (2)    any agency contract entered into by the athlete agent; and

        (3)    any direct costs incurred by the athlete agent in the recruitment or solicitation of a student athlete to enter into an agency contract.

    (B)    Records required by subsection (A) to be retained are open to inspection by the Secretary of State during normal business hours.

    Section 59-102-140.    (A)    An athlete agent, with the intent to induce a student athlete to enter into an agency contract, may not:

        (1)    give any materially false or misleading information or make a materially false promise or representation;

        (2)    furnish anything of value to a student athlete before the student athlete enters into the agency contract; or

        (3)    furnish anything of value to any individual other than the student athlete or another registered athlete agent.

    (B)    An athlete agent may not intentionally:

        (1)    initiate contact with a student athlete unless registered under this chapter;

        (2)    refuse or fail to retain or permit inspection of the records required to be retained by Section 59-102-130;

        (3)    fail to register when required by Section 59-102-40;

        (4)    provide materially false or misleading information in an application for registration or renewal of registration;

        (5)    predate or postdate an agency contract; or

        (6)    fail to notify a student athlete before the student athlete signs or otherwise authenticates an agency contract for a particular sport that the signing or authentication may make the student athlete ineligible to participate as a student athlete in that sport.

    Section 59-102-150.    An athlete agent who violates Section 59-102-140 is guilty of a misdemeanor and, upon conviction, is punishable by a fine of not more than ten thousand dollars or imprisonment for not more than three years, or both.

    Section 59-102-160.    (A)    An educational institution has a right of action against an athlete agent or a former student athlete for damages caused by a violation of this chapter. In an action under this section, the court may award to the prevailing party costs and reasonable attorney's fees.

    (B)    Damages of an educational institution under subsection (A) include losses and expenses incurred because, as a result of the conduct of an athlete agent or former student athlete, the educational institution was injured by a violation of this chapter or was penalized, disqualified, or suspended from participation in athletics by a national association for the promotion and regulation of athletics, by an athletic conference, or by reasonable self-imposed disciplinary action taken to mitigate sanctions likely to be imposed by such an organization.

    (C)    A right of action under this section does not accrue until the educational institution discovers or by the exercise of reasonable diligence would have discovered the violation by the athlete agent or former student athlete.

    (D)    Any liability of the athlete agent or the former student athlete under this section is several and not joint.

    (E)    This chapter does not restrict rights, remedies, or defenses of any person under law or equity.

    Section 59-102-170.    Upon a finding that an athlete agent has violated any provision of this chapter, as determined from admissions of the athlete agent freely and voluntarily made or as the result of a hearing conducted pursuant to the Administrative Procedures Act, the Secretary of State may assess a fine against an athlete agent not to exceed one hundred thousand dollars for a violation of this chapter.

    Section 59-102-180.    In applying and construing this uniform act, consideration must be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it.

    Section 59-102-190.    If any provision of this chapter or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this chapter which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are severable."

SECTION 2.    This act takes effect upon approval by the Governor.