South Carolina Legislature


 

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H*3068
Session 122 (2017-2018)


H*3068(Rat #0233, Act #0235 of 2018)  General Bill, By J.E. Smith and Clyburn

Similar(S 29) AN ACT TO AMEND CHAPTER 102, TITLE 59, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ATHLETENext AGENTS AND STUDENT PreviousATHLETESNext, SO AS TO ENACT THE "UNIFORM PreviousATHLETENext AGENTS ACT OF 2018", TO ADOPT PORTIONS OF THE INTERSTATE COMPACT FOR REGISTRATION OF STUDENT PreviousATHLETENext AGENTS AND MAKE NECESSARY CONFORMING CHANGES, TO REVISE VARIOUS PROVISIONS IN CONSIDERATION OF THE EXPANDED IMPACT OF SOCIAL MEDIA ON THE SOLICITATION AND RECRUITMENT OF STUDENT PreviousATHLETESNext BY PreviousATHLETENext AGENTS, TO REVISE REQUIREMENTS REGARDING THE ESTABLISHMENT OF RELATIONSHIPS BETWEEN STUDENT PreviousATHLETESNext AND PreviousATHLETENext AGENTS, AND TO REVISE VARIOUS AVAILABLE REMEDIES, AMONG OTHER THINGS. - ratified title 12/15/16 House Prefiled 12/15/16 House Referred to Committee on Education and Public Works 01/10/17 House Introduced and read first time (House Journal-page 62) 01/10/17 House Referred to Committee on Education and Public Works (House Journal-page 62) 01/23/18 House Committee report: Favorable with amendment Education and Public Works (House Journal-page 12) 01/24/18 House Amended (House Journal-page 49) 01/24/18 House Read second time (House Journal-page 49) 01/24/18 House Roll call Yeas-105 Nays-0 (House Journal-page 66) 01/25/18 House Amended (House Journal-page 10) 01/25/18 House Read third time and sent to Senate (House Journal-page 10) 01/25/18 House Roll call Yeas-102 Nays-0 (House Journal-page 26) 01/25/18 Senate Introduced and read first time (Senate Journal-page 8) 01/25/18 Senate Referred to Committee on Education (Senate Journal-page 8) 04/26/18 Senate Committee report: Favorable Education (Senate Journal-page 4) 05/09/18 Senate Committee Amendment Adopted (Senate Journal-page 81) 05/09/18 Senate Read second time (Senate Journal-page 81) 05/10/18 Senate Read third time and returned to House with amendments (Senate Journal-page 150) 05/10/18 Senate Roll call Ayes-44 Nays-0 (Senate Journal-page 150) 05/10/18 House Concurred in Senate amendment and enrolled (House Journal-page 129) 05/10/18 House Roll call Yeas-92 Nays-2 (House Journal-page 130) 05/14/18 Ratified R 233 05/17/18 Signed By Governor 05/30/18 Effective date 05/17/18 05/31/18 Act No. 235




H. 3068

(A235, R233, H3068)

AN ACT TO AMEND CHAPTER 102, TITLE 59, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PreviousATHLETENext AGENTS AND STUDENT PreviousATHLETESNext, SO AS TO ENACT THE "UNIFORM PreviousATHLETENext AGENTS ACT OF 2018", TO ADOPT PORTIONS OF THE INTERSTATE COMPACT FOR REGISTRATION OF STUDENT PreviousATHLETENext AGENTS AND MAKE NECESSARY CONFORMING CHANGES, TO REVISE VARIOUS PROVISIONS IN CONSIDERATION OF THE EXPANDED IMPACT OF SOCIAL MEDIA ON THE SOLICITATION AND RECRUITMENT OF STUDENT PreviousATHLETESNext BY PreviousATHLETENext AGENTS, TO REVISE REQUIREMENTS REGARDING THE ESTABLISHMENT OF RELATIONSHIPS BETWEEN STUDENT PreviousATHLETESNext AND PreviousATHLETENext AGENTS, AND TO REVISE VARIOUS AVAILABLE REMEDIES, AMONG OTHER THINGS.

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

PreviousAthleteNext agents and student PreviousathletesNext, uniform revisions

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

"CHAPTER 102

PreviousAthleteNext Agents and Student PreviousAthletesNext

Section 59-102-10.    This chapter may be cited as the 'Uniform PreviousAthleteNext Agents Act of 2018'.

Section 59-102-20.    In this chapter:

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

(2)    'PreviousAthleteNext agent':

(a)    means an individual, whether or not registered under this chapter, who:

(i)        directly or indirectly recruits or solicits a student PreviousathleteNext to enter into an agency contract or, for compensation, procures employment or offers, promises, PreviousattemptsNext, or negotiates to obtain employment for a student PreviousathleteNext as a professional PreviousathleteNext or member of a professional sports team or organization;

(ii)    for compensation or in anticipation of compensation related to a student PreviousathleteNext's participation in PreviousathleticsNext:

(A)    serves the PreviousathleteNext in an advisory capacity on a matter related to finances, business pursuits, or career management decisions, unless the individual is an employee of an educational institution acting exclusively as an employee of the institution for the benefit of the institution; or

(B)    manages the business affairs of the PreviousathleteNext by providing assistance with bills, payments, contracts, or taxes; or

(iii)    in anticipation of representing a student PreviousathleteNext for a purpose related to the PreviousathleteNext's participation in PreviousathleticsNext:

(A)    gives consideration to the student PreviousathleteNext or another person;

(B)    serves the PreviousathleteNext in an advisory capacity on a matter related to finances, business pursuits, or career management decisions; or

(C)    manages the business affairs of the PreviousathleteNext by providing assistance with bills, payments, contracts, or taxes; but

(b)    does not include an individual who:

(i)        acts solely on behalf of a professional sports team or organization; or

(ii)    is a licensed, registered, or certified professional and offers or provides services to a student PreviousathleteNext customarily provided by members of the profession, unless the individual:

(A)    also recruits or solicits the PreviousathleteNext to enter into an agency contract;

(B)    also, for compensation, procures employment or offers, promises, PreviousattemptsNext, or negotiates to obtain employment for the PreviousathleteNext as a professional PreviousathleteNext or member of a professional sports team or organization; or

(C)    receives consideration for providing the services calculated using a different method than for an individual who is not a student PreviousathleteNext.

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

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

(5)    'Educational institution' includes a public or private elementary school, secondary school, technical or vocational school, community college, college, and university.

(6)    'Endorsement contract' means an agreement under which a student PreviousathleteNext is employed or receives consideration to use on behalf of another party any value the student PreviousathleteNext has because of publicity, reputation, following, or fame obtained from PreviousathleticNext ability or performance.

(7)    'Enrolled' means registered for courses and PreviousattendingNext PreviousathleticNext practice or class. 'Enrolls' has a corresponding meaning.

(8)    'Intercollegiate sport' means a sport played at the collegiate level for which eligibility requirements for participation by a student PreviousathleteNext are established by a national association that promotes or regulates collegiate PreviousathleticsNext.

(9)    'Interscholastic sport' means a sport played between educational institutions that are not community colleges, colleges, or universities.

(10)    'Licensed, registered, or certified professional' means an individual licensed, registered, or certified as an PreviousattorneyNext, dealer in securities, financial planner, insurance agent, real estate broker or sales agent, tax consultant, accountant, or member of a profession, other than that of PreviousathleteNext agent, who is licensed, registered, or certified by the state or a nationally recognized organization that licenses, registers, or certifies members of the profession on the basis of experience, education, or testing.

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

(12)    '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 PreviousathleteNext.

(13)    '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.

(14)    'Recruit or solicit' means PreviousattemptNext to influence the choice of an PreviousathleteNext agent by a student PreviousathleteNext or, if the PreviousathleteNext is a minor, a parent or guardian of the PreviousathleteNext. The term does not include giving advice on the selection of a particular agent in a family, coaching, or social situation unless the individual giving the advice does so because of the receipt or anticipated receipt of an economic benefit, directly or indirectly, from the agent.

(15)    'Registration' means registration as an PreviousathleteNext agent pursuant to this chapter.

(16)    'Sign' means, with present intent to authenticate or adopt a record, to:

(a)    execute or adopt a tangible symbol; or

(b)    PreviousattachNext to or logically associate with the record an electronic symbol, sound, or process.

(17)    '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 another state.

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

Section 59-102-30.    (A)    The provisions of the Administrative Procedures Act of Chapter 23, Title 1 apply to this chapter. The Department of Consumer Affairs may promulgate regulations to effectuate the purposes of this chapter.

(B)    By acting as an PreviousathleteNext agent in this State, a nonresident person appoints the Director of the Department of Consumer Affairs as his agent for service of process in a civil action in this State related to his acting as an PreviousathleteNext agent in this State.

(C)    The Department of Consumer Affairs may issue subpoenas for material relevant to the administration of this chapter.

(D)    All funds collected by the department pursuant to this chapter may be retained by the department and used to implement the provisions of this chapter.

Section 59-102-40.    (A)    Except as otherwise provided in subsection (B), a person may not act as an PreviousathleteNext agent in this State without holding a certificate of registration pursuant to Section 59-102-60 or 59-102-80.

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

(1)    a student PreviousathleteNext or one acting on behalf of the student PreviousathleteNext initiates communication with the person; and

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

(C)    An agency contract resulting from conduct in violation of this section is void and the PreviousathleteNext agent shall return all consideration received pursuant to the contract.

Section 59-102-50.    (A)    An applicant for registration shall submit an application for registration to the Department of Consumer Affairs in a form prescribed by the department. An application filed pursuant to this section is a public record. The application must be in the name of a person 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, date of birth, and place of birth of the applicant and:

(a)    the address of his principal place of business;

(b)    his work and mobile telephone numbers; and

(c)    any means of communicating with him electronically, including:

(i)        facsimile number;

(ii)    electronic mail address; and

(iii)    personal, business, or employer websites;

(2)    the name of the applicant's business or employer, if applicable, including for each business or employer its mailing address, telephone number, organizational form, and the nature of the business;

(3)    each social media account with which the applicant, his business, or his employer is affiliated;

(4)    any business or occupation engaged in by the applicant for the five years next preceding the date of submission of the application, including self-employment and employment by others, and any professional or occupational license, registration, or certification held by the applicant during that time;

(5)    a description of the applicant's:

(a)    formal training as an PreviousathleteNext agent;

(b)    practical experience as an PreviousathleteNext agent; and

(c)    educational background relating to his activities as an PreviousathleteNext agent;

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

(7)    the name, sport, and last known team for each individual for whom the applicant acted as an PreviousathleteNext agent during the five years next preceding the date of submission of the application, or, if the individual is a minor, the name of his parent or guardian;

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

(a)    with respect to the PreviousathleteNext agent's business, if it is not a corporation, the partners, members, officers, managers, associates, or profit-sharers of the business who hold an equity interest of five percent or greater in that business; and

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

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

(a)    crime;

(b)    law enforcement agency involved; and

(c)    if applicable, the date of conviction and the fine or penalty imposed;

(10)    whether, within fifteen years before the date of application, the applicant or a person named under item (8) has been a defendant or respondent in a civil proceeding, including a proceeding seeking an adjudication of legal incompetence and, if so, the date and a full explanation of each proceeding;

(11)    whether the applicant or a person named under item (8) has an unsatisfied judgment or a judgment of continuing effect, including alimony or a family court order for child support, which is not current at the date of the application;

(12)    whether, within ten years before the date of application, the applicant or a person named under item (8) was adjudicated bankrupt or was an owner of a business that was adjudicated bankrupt;

(13)    whether there has been any administrative or judicial determination that the applicant or a person named pursuant to item (8) has made a false, misleading, deceptive, or fraudulent representation;

(14)    an instance in which the conduct of the applicant or a person named pursuant to item (8) resulted in the imposition against a student PreviousathleteNext or educational institution of a sanction, suspension, or declaration of ineligibility to participate in an interscholastic or intercollegiate PreviousathleticNext event;

(15)    a sanction, suspension, or disciplinary action taken against the applicant or a person named pursuant to item (8) arising out of occupational or professional conduct;

(16)    whether there has been a denial of an application for, suspension or revocation of, or refusal to renew the registration or licensure of the applicant or a person named pursuant to item (8) as an PreviousathleteNext agent in any state;

(17)    each state in which the applicant currently is registered as an PreviousathleteNext agent or has applied to be registered as an PreviousathleteNext agent;

(18)    if the applicant is certified or registered by a professional league or players association:

(a)    the name of the league or association;

(b)    the date of certification or registration, and the date of expiration of the certification or registration, if any; and

(c)    if applicable, the date of any denial of an application for, suspension or revocation of, refusal to renew, withdrawal of, or termination of, the certification or registration or any reprimand or censure related to the certification or registration; and

(19)    any additional information required by the department.

(B)    Instead of submitting an application in the form prescribed pursuant to subsection (A), an applicant for registration in this State, who has applied for and holds a certificate, registration, or licensure as an PreviousathleteNext agent in another state, may submit:

(1)    a copy of the application for registration in the other state;

(2)    a statement that:

(a)    identifies any material change in the information on the application described in item (1), cosigned under penalty of perjury; or

(b)    verifies there is no such material change provided in subitem (a), signed under penalty of perjury; and

(3)    a copy of the certificate of registration from the other state.

(C)    The Department of Consumer Affairs shall accept the application and the certificate from the other state as an application for registration in this State and issue a certificate of registration to the applicant 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;

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

(4)    the registration has not been revoked or suspended and no action involving the person's conduct as an PreviousathleteNext agent is pending against the person or his registration in any state.

(D)    For purposes of implementing the provisions of subsection (C), the department shall:

(1)    cooperate with national organizations concerned with PreviousathleteNext agent issues and agencies in other states which register PreviousathleteNext agents to develop a common registration form and determine which states have laws that are substantially similar to or more restrictive than this chapter; and

(2)    exchange information, including information related to actions taken against registered PreviousathleteNext agents or their registrations, with those organizations and agencies.

Section 59-102-60.    (A)    Except as otherwise provided in subsection (B), the Department of Consumer Affairs shall issue a certificate of registration to a person who complies with Section 59-102-50(A) or whose application has been accepted pursuant to Section 59-102-50(B).

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

(1)    pleaded guilty or no contest to, has been convicted of, or has charges pending for a crime that would be a crime involving moral turpitude or a felony if committed in this State;

(2)    made a materially false, misleading, deceptive, or fraudulent representation in the application or as an PreviousathleteNext 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 PreviousathleteNext agent suspended, revoked, or denied or been refused renewal of registration or licensure as an PreviousathleteNext agent in any state;

(6)    engaged in conduct resulting in the imposition against a student PreviousathleteNext or educational institution of a sanction, suspension, or declaration of ineligibility to participate in an interscholastic or intercollegiate PreviousathleticNext event; or

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

(C)    In making a determination pursuant to subsection (B), the department shall consider:

(1)    how recently the conduct occurred;

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

(3)    other relevant conduct of the applicant.

(D)    An PreviousathleteNext agent registered under subsection (A) may apply to renew a registration by submitting an application for renewal in a form prescribed by the department. An application filed pursuant to 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 PreviousathleteNext agent registered pursuant to Section 59-102-50(C) may renew the registration by proceeding under Section 59-102-50(D) or, if registration in the other state has been renewed, by submitting to the department copies of the application for renewal in the other state and the renewed registration from the other state. The department shall renew the registration if it determines:

(1)    registration requirements of the other state are substantially similar to or more restrictive than this chapter; and

(2)    the renewed registration has not been suspended or revoked and no action involving the person's conduct as an PreviousathleteNext agent is pending against him or his registration in any state.

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

Section 59-102-70.    (A)    The Department of Consumer Affairs may limit, suspend, revoke, or refuse to renew a registration of a person registered pursuant to Section 59-102-60(A) for conduct that would have justified denial of registration pursuant to Section 59-102-60(B).

(B)    The department may suspend or revoke the registration of a person registered pursuant to Section 59-102-50(C) or renewed pursuant to Section 59-102-60(E) for any reason for which the department could have refused to grant or renew registration or for conduct that would justify refusal to issue a certificate of registration pursuant to Section 59-102-60(B).

Section 59-102-80.    The Department of Consumer Affairs may issue a temporary certificate of registration as an PreviousathleteNext agent 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 of:

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

(2)    five hundred dollars for registration based on a certificate of registration issued by another state;

(3)    three hundred dollars for an application for renewal of registration; or

(4)    three hundred dollars for renewal of registration based on a renewal of registration in another state.

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

(B)    An agency contract must include:

(1)    in a statement that the PreviousathleteNext agent is registered as an PreviousathleteNext agent in this State and a list of other states in which he is registered as an PreviousathleteNext agent;

(2)    the amount and method of calculating the consideration to be paid by the student PreviousathleteNext for services provided by the PreviousathleteNext agent under the contract and other consideration the PreviousathleteNext agent receives from another source for entering into the contract or for providing the services;

(3)    the name of a person not listed in the application for registration or renewal of registration to be compensated because the student PreviousathleteNext signed the agency contract;

(4)    a description of expenses the student PreviousathleteNext agrees to reimburse;

(5)    a description of the services to be provided to the student PreviousathleteNext;

(6)    the duration of the contract; and

(7)    the date of execution.

(C)    Subject to the provisions of subsection (G), an agency contract must contain, in close proximity to the signature of the student PreviousathleteNext, a conspicuous notice in boldface type in capital letters stating:

'WARNING TO STUDENT PreviousATHLETENext

IF YOU SIGN THIS CONTRACT:

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

(2)    IF YOU HAVE AN PreviousATHLETICNext DIRECTOR, WITHIN SEVENTY-TWO HOURS AFTER SIGNING THIS CONTRACT OR BEFORE THE NEXT SCHEDULED PreviousATHLETICNext EVENT IN WHICH YOU PARTICIPATE, WHICHEVER OCCURS FIRST, BOTH YOU AND YOUR PreviousATHLETENext AGENT MUST NOTIFY YOUR PreviousATHLETICNext DIRECTOR THAT YOU HAVE ENTERED INTO THIS CONTRACT AND PROVIDE THE NAME AND CONTACT INFORMATION OF THE PreviousATHLETENext AGENT; AND

(3)    YOU MAY CANCEL THIS CONTRACT WITHIN 14 DAYS AFTER SIGNING IT. CANCELLATION OF THIS CONTRACT MAY NOT REINSTATE YOUR ELIGIBILITY AS A STUDENT PreviousATHLETENext IN YOUR SPORT.'

(D)    An agency contract must be accompanied by a separate record signed by the student PreviousathleteNext or, if the PreviousathleteNext is a minor, the parent or guardian of the PreviousathleteNext acknowledging that signing the contract may result in the loss of the PreviousathleteNext's eligibility to participate in the PreviousathleteNext's sport.

(E)    A student PreviousathleteNext or, if the PreviousathleteNext is a minor, the parent or guardian of the PreviousathleteNext may void an agency contract that does not conform to this section. If the contract is voided, any consideration received from the PreviousathleteNext agent under the contract to induce entering into the contract is not required to be returned.

(F)    At the time an agency contract is executed, the PreviousathleteNext agent shall give the student PreviousathleteNext or, if the PreviousathleteNext is a minor, the parent or guardian of the PreviousathleteNext a copy in a record of the contract and the separate acknowledgement required by subsection (D).

(G)    If a student PreviousathleteNext is a minor, an agency contract must be signed by the parent or guardian of the minor and the notice required by subsection (C) must be revised accordingly.

Section 59-102-110.    (A)    In this section, 'communicating or PreviousattemptingNext to communicate' means contacting or PreviousattemptingNext to contact by an in-person meeting, a record, or another method that conveys or PreviousattemptsNext to convey a message.

(B)    Not later than seventy-two hours after entering into an agency contract or before the next scheduled PreviousathleticNext event in which the student PreviousathleteNext may participate, whichever occurs first, the PreviousathleteNext agent shall give notice in a record of the existence of the contract to the PreviousathleticNext director of the educational institution at which the PreviousathleteNext is enrolled or at which the agent has reasonable grounds to believe the PreviousathleteNext intends to enroll.

(C)    Not later than seventy-two hours after entering into an agency contract or before the next scheduled PreviousathleticNext event in which the student PreviousathleteNext may participate, whichever occurs first, the PreviousathleteNext shall inform the PreviousathleticNext director of the educational institution at which the PreviousathleteNext is enrolled that the PreviousathleteNext has entered into an agency contract and the name and contact information of the PreviousathleteNext agent.

(D)    If an PreviousathleteNext agent enters into an agency contract with a student PreviousathleteNext and the PreviousathleteNext subsequently enrolls at an educational institution, the agent shall notify the PreviousathleticNext director of the institution of the existence of the contract not later than seventy-two hours after the agent knew or should have known the PreviousathleteNext enrolled.

(E)    If an PreviousathleteNext agent has a relationship with a student PreviousathleteNext before the PreviousathleteNext enrolls in an educational institution and receives an PreviousathleticNext scholarship from the institution, the agent shall notify the institution of the relationship not later than ten days after the enrollment if the agent knows or should have known of the enrollment and:

(1)    the relationship was motivated in whole or part by the intention of the agent to recruit or solicit the PreviousathleteNext to enter an agency contract in the future; or

(2)    the agent directly or indirectly recruited or solicited the PreviousathleteNext to enter an agency contract before the enrollment.

(F)    An PreviousathleteNext agent shall give notice in a record to the PreviousathleticNext director of an educational institution at which a student PreviousathleteNext is enrolled before the agent communicates or PreviousattemptsNext to communicate with:

(1)    the PreviousathleteNext or, if the PreviousathleteNext is a minor, a parent or guardian of the PreviousathleteNext to influence the PreviousathleteNext or parent or guardian to enter into an agency contract; or

(2)    another person to have that person influence the PreviousathleteNext or, if the PreviousathleteNext is a minor, the parent or guardian of the PreviousathleteNext to enter into an agency contract.

(G)    If a communication or PreviousattemptNext to communicate with an PreviousathleteNext agent is initiated by a student PreviousathleteNext or another person on behalf of the PreviousathleteNext, the agent shall notify in a record the PreviousathleticNext director of any educational institution at which the PreviousathleteNext is enrolled. The notification must be made not later than ten days after the communication or PreviousattemptNext.

(H)    An educational institution that becomes aware of a violation of this chapter by an PreviousathleteNext agent shall notify the Department of Consumer Affairs and a professional league or players' association with which the institution is aware the agent is licensed or registered of the violation.

Section 59-102-120.    (A)    A student PreviousathleteNext, or if the PreviousathleteNext is a minor, his parent or guardian may cancel an agency contract by giving notice of the cancellation to the PreviousathleteNext agent in a record within fourteen days after the contract is signed.

(B)    The right to cancel an agency contract provided in subsection (A) may not be waived.

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

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

(1)    the name and address of each person represented by the PreviousathleteNext agent;

(2)    an agency contract entered into by the PreviousathleteNext agent; and

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

(B)    Records retained pursuant to subsection (A) are open to inspection by the Department of Consumer Affairs during normal business hours.

Section 59-102-140.    (A)    An PreviousathleteNext agent, with the intent to induce a student PreviousathleteNext or, if the student PreviousathleteNext is a minor, a parent or guardian of the student PreviousathleteNext to enter into an agency contract, may not take any of the following actions or encourage another person to take or assist another person in taking any of the following actions on behalf of the PreviousathleteNext agent:

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

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

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

(B)    An PreviousathleteNext agent may not intentionally do any of the following or encourage another person to do any of the following on behalf of the PreviousathleteNext agent:

(1)    initiate contact, directly or indirectly, with a student PreviousathleteNext or, if the student PreviousathleteNext is a minor, a parent or guardian of the student PreviousathleteNext to recruit the student PreviousathleteNext, parent, or guardian to enter an agency contract unless registered pursuant to this chapter;

(2)    refuse or fail to retain or permit inspection of records pursuant to Section 59-102-130;

(3)    fail to register as 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 PreviousathleteNext or, if the student PreviousathleteNext is a minor, a parent or guardian of the PreviousathleteNext before the student PreviousathleteNext, parent, or guardian signs or otherwise authenticates an agency contract for a particular sport that the signing or authentication may make the student PreviousathleteNext ineligible to participate as a student PreviousathleteNext in that sport.

Section 59-102-150.    An PreviousathleteNext agent who violates Section 59-102-140 is guilty of a misdemeanor and, upon conviction, may be fined not more than ten thousand dollars or imprisoned for not more than three years, or both.

Section 59-102-160.    (A)    An educational institution or student PreviousathleteNext may bring an action for damages against an PreviousathleteNext agent if the institution or PreviousathleteNext is adversely affected by an act or omission of the agent in violation of this chapter. An educational institution or student PreviousathleteNext is adversely affected by an act or omission of the agent only if, because of the act or omission, the institution or a person who was a student PreviousathleteNext at the time of the act or omission and enrolled in the institution:

(1)    is suspended or disqualified from participation in an interscholastic or intercollegiate PreviousathleticNext event by or under the rules of a state or national federation or association that promotes or regulates interscholastic or intercollegiate sports; or

(2)    suffers financial damage.

(B)    A plaintiff that prevails in an action under this section may recover actual damages, punitive damages, costs, and reasonable PreviousattorneyNext's fees. An PreviousathleteNext agent found liable under this section forfeits any right of payment for anything of benefit or value provided to the student PreviousathleteNext and shall refund any consideration paid to the agent by or on behalf of the PreviousathleteNext.

(C)    A violation of this chapter is an unfair trade practice for purposes of the South Carolina Unfair Trade Practices Act.

Section 59-102-170.    Upon a finding that an PreviousathleteNext agent has violated a provision of this chapter, as determined from admissions of the PreviousathleteNext agent freely and voluntarily made or as the result of a contested case hearing, the administrative law judge may assess a fine against an Previousathlete 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.    The provisions of this chapter modify, limit, or supersede the Electronic Signatures in Global and National Commerce Act, 15 U.S.C. Section 7001, et seq., but do not modify, limit, or supersede Section 101(c) of that act, 15 U.S.C. Section 7001(c), or authorize electronic delivery of any of the notices described in Section 103(b) of that act, 15 U.S.C. Section 7003(b)."

Severability

SECTION    2.    If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed this act, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.

Code Commissioner directives

SECTION    3.    After enactment of the provisions of this act, the Code Commissioner is authorized to insert the Official Comments, as amended, available from the Uniform Law Commission into the annotated versions of the provisions of this act, as contained in the South Carolina Code of Laws, after the appropriate provision and before the South Carolina Reporter's Comments, to the extent that the South Carolina Reporter's Comments follow a provision. The Official Comments, prepared by the Uniform Law Commission with the intent of aiding the user in understanding the provisions to the Uniform Commercial Code, are not considered part of this act and do not indicate legislative intent.

Time effective

SECTION    4.    This act takes effect upon approval by the Governor.

Ratified the 14th day of May, 2018.

Approved the 17th day of May, 2018.

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Legislative Services Agency
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