CHAPTER 2051. ATHLETE AGENTS

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OCCUPATIONS CODE

TITLE 13. SPORTS, AMUSEMENTS, AND ENTERTAINMENT

SUBTITLE B. SPORTS

CHAPTER 2051. ATHLETE AGENTS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 2051.001. DEFINITIONS. In this chapter:

(1) "Agent contract" means a contract or an agreement under

which an athlete authorizes an athlete agent to negotiate for

employment on behalf of the athlete with a professional sports

team.

(2) "Athlete" means an individual who:

(A) is eligible to participate in intercollegiate sports

contests as a member of a sports team or as an individual

competitor in a sport at an institution of higher education; or

(B) has participated as a member of an intercollegiate sports

team or as an individual competitor in an intercollegiate sport

at an institution of higher education and has never signed an

employment contract with a professional sports team.

(3) "Athlete agent" means a person who:

(A) for compensation, directly or indirectly recruits or

solicits an athlete to enter into an agent contract, a financial

services contract, or a professional sports services contract

with that person or another person; or

(B) for a fee, procures, offers, promises, or attempts to obtain

employment for an athlete with a professional sports team.

(4) "Financial services contract" means a contract or an

agreement under which an athlete authorizes the athlete agent to

perform financial services for the athlete, including making and

executing investment and other financial decisions for the

athlete.

(5) "Institution of higher education" means an institution of

higher education or a private or independent institution of

higher education, as defined by Section 61.003, Education Code,

that is a member of a national association for the promotion and

regulation of intercollegiate athletics.

(6) "Schedule of fees" includes the fees and percentages charged

by an athlete agent for professional services performed for an

athlete.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Amended by Acts 2003, 78th Leg., ch. 821, Sec. 1, eff. Sept. 1,

2003.

Sec. 2051.002. PARTICIPATION IN INTERCOLLEGIATE SPORTS CONTESTS.

An athlete is not eligible to participate in intercollegiate

sports contests if the athlete:

(1) declares that the athlete is eligible for recruitment by a

professional sports team; or

(2) has concluded, in the athlete's final year of eligibility,

the athlete's final intercollegiate sports contest, as determined

by the governing body of the national association for the

promotion and regulation of intercollegiate athletics of which

the athlete's institution of higher education is a member.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Amended by Acts 2003, 78th Leg., ch. 821, Sec. 2, eff. Sept. 1,

2003.

Sec. 2051.003. EFFECT OF PERSONAL SERVICE CONTRACT. In this

chapter, a personal service contract between an athlete and the

owner or prospective owner of a professional sports team in which

the athlete agrees to perform future athletic services

constitutes employment with a professional sports team.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 2051.004. ATHLETE AGENT CONTACT. (a) An athlete agent may

contact an athlete only as provided by this chapter.

(b) Except as provided by Subsection (c), an athlete agent may

contact a person who declares that the person is eligible for

recruitment by a professional sports team.

sports team later becomes eligible to participate in

intercollegiate sports, an athlete agent may contact the person

only as provided by this chapter.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 2051.005. CERTAIN PROFESSIONAL SERVICES EXEMPT. This

chapter does not apply to a person who directly or indirectly

recruits or solicits an athlete to enter into a contract with the

person in which, for compensation, the person performs financial

services for the athlete if:

(1) the person is licensed or registered by the state as:

(A) a dealer, agent, investment adviser, or investment adviser

representative;

(B) a real estate broker or salesperson;

(D) another professional;

(2) the financial services performed by the person are of a type

that are customarily performed by a person licensed in that

profession; and

(3) the person does not:

(A) recruit or solicit the athlete to enter into an agent

contract or a professional services contract on behalf of the

person, an affiliate, a related entity, or a third party; or

(B) procure, offer, promise, or attempt to obtain for the

athlete employment with a professional sports team.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Amended by Acts 2001, 77th Leg., ch. 1091, Sec. 4.04, eff. Sept.

1, 2001.

Sec. 2051.006. UNIFORMITY OF APPLICATION AND CONSTRUCTION. In

applying this chapter, consideration must be given to the need to

promote uniformity of the law among states that have enacted

similar laws.

Added by Acts 2003, 78th Leg., ch. 821, Sec. 3, eff. Sept. 1,

2003.

SUBCHAPTER B. POWERS AND DUTIES OF SECRETARY OF STATE

Sec. 2051.051. ADMINISTRATION OF CHAPTER. (a) The secretary of

state shall:

(1) actively enforce this chapter;

(2) set reasonable and necessary fees for the administration of

this chapter; and

(3) conduct investigations necessary to ensure compliance with

this chapter.

(b) The secretary may adopt rules necessary to administer this

chapter.

administering this chapter.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 2051.052. PUBLICATION OF COMPLIANCE RESPONSIBILITIES. (a)

The secretary of state shall, at least once a year, publish

information that prescribes the compliance responsibilities of an

institution of higher education under this chapter.

(b) The secretary shall mail, return receipt requested, a copy

of the compliance responsibilities published under Subsection (a)

to the athletic director or other appropriate official of each

institution of higher education.

responsibilities materials.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

SUBCHAPTER C. REGISTRATION

Sec. 2051.101. REGISTRATION REQUIRED. (a) Except as provided

by Subsection (b), a person may not act as an athlete agent in

this state or represent that the person is an athlete agent in

this state unless the person holds a certificate of registration

under this chapter.

(b) Before the issuance of a certificate of registration under

this chapter, a person may act as an athlete agent in this state

for all purposes except signing an agent contract, if:

(1) an athlete or a person acting on behalf of the athlete

initiates communication with the person; and

(2) within seven days after the date of the initial act as an

athlete agent, the person submits an application for registration

under this chapter.

agent is void.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Amended by Acts 2003, 78th Leg., ch. 821, Sec. 4, eff. Sept. 1,

2003.

Sec. 2051.102. APPLICATION REQUIREMENTS. (a) Except as

provided by Subsection (e), an applicant for registration as an

athlete agent must apply on a form prescribed by the secretary of

state.

(b) An applicant must provide information required by the

secretary of state, including:

(1) the applicant's:

(A) name;

(B) principal business address;

preceding the date of application; and

(D) formal training, practical experience, and educational

background relating to the applicant's professional activities as

an athlete agent;

(2) the name, sport, and last known team for each person the

applicant represented as an athlete agent during the five years

immediately preceding the date of application;

(3) whether the applicant or a person described by Subdivision

(5) has been subject to any of the following:

(A) a conviction of a crime that in this state is a felony or a

crime of moral turpitude;

(B) an administrative or a judicial determination finding the

applicant or other person made a false, misleading, deceptive, or

fraudulent representation;

professional conduct;

(D) a denial of an application for a certificate of registration

or license as an athlete agent; or

(E) a denial, revocation, or suspension of a certificate of

registration or license as an athlete agent;

(4) whether the applicant or a person described by Subdivision

(5) has engaged in conduct resulting in the imposition on an

athlete or educational institution of a sanction, suspension, or

declaration of ineligibility to participate in an interscholastic

or intercollegiate athletic event; and

(5) except as provided by Subsection (d), the name and address

of each person, except a bona fide employee on salary, who is

financially interested as a partner, associate, or profit sharer

in the applicant's business.

three professional references.

(d) If an applicant is a member of the State Bar of Texas, the

application information required under Subsection (b)(5) must

include the name and address of each person who is involved in

the activities of the athlete agent. This subsection does not

require an applicant to state the name and address of a member of

a law firm or professional corporation who is not involved in the

business of the athlete agent.

(e) A person seeking certification as an athlete agent under

this chapter who holds a certificate of registration or license

as an athlete agent in another state may submit a copy of the

previous application and certificate or license instead of

submitting the application required by this section. The

secretary of state shall accept the application and the

certificate or license from the other state as an application for

registration in this state if the application to the other state:

(1) was submitted to the other state not earlier than the 180th

day before the date the application is submitted 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 the information required by this section; and

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

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Amended by Acts 2003, 78th Leg., ch. 821, Sec. 5, eff. Sept. 1,

2003.

Sec. 2051.103. CORPORATION, ASSOCIATION, OR PARTNERSHIP

APPLICANT. If an applicant for registration is a corporation,

association, or partnership, each officer, associate, or partner,

as appropriate, must provide the information required under

Section 2051.102.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 2051.104. SUPPLEMENTAL APPLICATION REQUIREMENTS. (a) An

applicant for registration that is a corporation, association,

partnership, or another entity other than a sole proprietorship

or an individual shall attach to the application for registration

under Section 2051.102 or the renewal application under Section

2051.108 the name and address of each individual who recruits or

solicits an athlete to enter into an agent contract, a financial

services contract, or a professional sports services contract

with the corporation, association, partnership, or other entity.

(b) A registered athlete agent that changes the individuals

identified under Subsection (a) shall, not later than the 30th

day after the date the change is made, file with the secretary of

state a statement showing the change.

required under this section.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 2051.105. DENIAL OF APPLICATION. (a) The secretary of

state shall deny an application for registration if the applicant

has been convicted of:

(1) a felony; or

(2) a misdemeanor involving moral turpitude.

(b) The secretary of state may deny an application for

registration if the secretary of state determines 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) made a materially false, misleading, deceptive, or

fraudulent representation in the application or as an athlete

agent;

(2) engaged in conduct that would disqualify the applicant from

serving in a fiduciary capacity;

(3) engaged in conduct prohibited by Section 2051.351;

(4) had a registration or licensure as an athlete agent denied,

suspended, or revoked;

(5) been denied renewal of registration or licensure as an

athlete agent in any state;

(6) engaged in conduct that resulted in the imposition on an

athlete or educational institution of a sanction, suspension, or

declaration of ineligibility to participate in an interscholastic

or intercollegiate athletic event; or

(7) engaged in conduct that adversely reflects on the

applicant's credibility, honesty, or integrity.

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) Judicial review of a denial of an application for

registration under Subsection (a) or (b) is by trial de novo and

is subject to Section 2001.173, Government Code.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Amended by Acts 2003, 78th Leg., ch. 821, Sec. 6, eff. Sept. 1,

2003.

Sec. 2051.106. TEMPORARY OR PROVISIONAL REGISTRATION. The

secretary of state may issue a temporary or provisional

certificate of registration that is valid for not more than 90

days to an applicant for registration or renewal of registration

if the applicant's application has been made and the registration

process has not been completed.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 2051.107. REGISTRATION DURATION; EXPIRATION. (a) Except

as provided by Subsection (b), a certificate of registration

issued under this chapter is valid for a period of not more than

one year from the date of issuance.

(b) The secretary of state, by rule, may adopt a system under

which certificates of registration expire on various dates during

the year.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 2051.108. REGISTRATION RENEWAL. (a) Except as provided by

Subsection (e), an applicant for renewal of registration must

apply on a form prescribed by the secretary of state.

(b) A renewal application must include:

(1) the name and address of each athlete for whom the athlete

agent is performing professional services for compensation on the

date of the renewal application;

(2) the name and address of each athlete for whom the athlete

agent has performed professional services for compensation during

the three years immediately preceding the date of the renewal

application but for whom the athlete agent is not performing

professional services on the date of the renewal application; and

(3) any other information prescribed by the secretary of state.

by an appropriate renewal fee.

(d) If a certificate of registration expires earlier than the

anniversary of the date of issuance, the renewal fee that must

accompany a renewal application under this section shall be

prorated according to the number of months that the registration

is valid.

(e) A person who has submitted an application for renewal of

registration or licensure as an athlete agent in another state

may submit a copy of the application and certificate of

registration or license from the other state instead of

submitting the application required by this section. The

secretary of state shall accept the application for renewal from

the other state as an application for renewal under this section

if the application to the other state:

(1) was submitted to the other state not earlier than the 180th

day before the date the renewal application is submitted 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 the information required by this section; and

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

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Amended by Acts 2003, 78th Leg., ch. 821, Sec. 7, eff. Sept. 1,

2003.

SUBCHAPTER D. ATHLETE AGENT BOND

Sec. 2051.151. BOND DEPOSIT. (a) An athlete agent shall,

before entering into a financial services contract with an

athlete, deposit with the secretary of state a surety bond, in

the amount of $100,000, payable to the state and conditioned on:

(1) the athlete agent complying with this chapter;

(2) the payment of money owed to an individual or group of

individuals when the athlete agent or the athlete agent's

representative or agent receives the money; and

(3) the payment of damages to an athlete caused by the

intentional misrepresentation, fraud, deceit, or unlawful or

negligent act or omission of the athlete agent or of the athlete

agent's representative or employee while acting within the scope

of the financial services contract.

(b) An athlete agent shall maintain a bond deposited under

Subsection (a) for not less than two years after the date that

the athlete agent ceases to provide financial services to an

athlete.

recoverable in a suit filed against an athlete agent to the

amount of the bond.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 2051.152. CANCELLATION OF BOND; SUSPENSION OF CERTIFICATE.

(a) Not later than the 30th day after the date an athlete agent

receives a notice of cancellation from the surety of a bond

deposited under Section 2051.151, the athlete agent shall file a

new bond with the secretary of state.

(b) The secretary shall suspend the certificate of registration

of an athlete agent who fails to file a new bond as required by

Subsection (a) until a new bond is filed.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 2051.153. EXEMPTION FROM BOND REQUIREMENTS FOR AGENT ONLY

CONTRACTS. This subchapter does not apply to an athlete agent

who enters into only an agent contract with an athlete.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

SUBCHAPTER E. FORM, CONTENT, AND FILING OF CERTAIN CONTRACTS

Sec. 2051.201. CONTRACT FORM. A registered athlete agent must

use a form approved by the secretary of state for any agent

contract or financial services contract.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 2051.202. CONTRACT SIGNING. An athlete may sign an athlete

agent contract at any time as permitted by the national

association for the promotion and regulation of intercollegiate

athletics of which the athlete's institution of higher education

is a member.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 2051.203. CONTRACT REQUIREMENTS RELATING TO FEES AND

SERVICES. (a) An agent contract or a financial services

contract must include:

(1) a schedule of fees, including:

(A) the amount and method of computing the consideration to be

paid by the athlete for services to be provided by the athlete

agent under the contract; and

(B) any other consideration the athlete agent received or will

receive from any other source for entering into the contract or

for providing the services;

(2) a description of the professional services that the athlete

agent will perform for the athlete;

(3) the name of any person not listed in the application for

registration or renewal of registration who will be compensated

because the athlete signed the agent contract;

(4) a description of any expenses of the athlete agent the

athlete agrees to reimburse;

(5) the duration of the contract; and

(6) the date the contract was signed.

(b) A registered athlete agent may charge a fee only as provided

by the schedule of fees in the contract.

on the seventh day after the date on which the athlete agent

files with the secretary of state a copy of the contract as

required by Section 2051.205(b).

(d) The athlete agent shall give a signed copy of the contract

to the athlete at the time the contract is signed.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Amended by Acts 2003, 78th Leg., ch. 821, Sec. 8, eff. Sept. 1,

2003.

Sec. 2051.204. CONTRACT REQUIREMENTS RELATING TO NOTICE. (a)

An agent contract or a financial services contract must include

the following notice:

(1) THIS ATHLETE AGENT IS REGISTERED WITH THE SECRETARY OF STATE

OF THE STATE OF TEXAS. REGISTRATION WITH THE SECRETARY OF STATE

DOES NOT IMPLY APPROVAL OR ENDORSEMENT BY THE SECRETARY OF STATE

OF THE COMPETENCE OF THE ATHLETE AGENT OR OF THE SPECIFIC TERMS

AND CONDITIONS OF THIS CONTRACT.

NOTICE TO CLIENT

(2) DO NOT SIGN THIS CONTRACT UNTIL YOU HAVE READ IT OR IF IT

CONTAINS BLANK SPACES.

(3) IF YOU DECIDE THAT YOU DO NOT WISH TO PURCHASE THE SERVICES

OF THE ATHLETE AGENT, YOU MAY CANCEL THIS CONTRACT BY NOTIFYING

THE ATHLETE AGENT IN WRITING OF YOUR DESIRE TO CANCEL THE

CONTRACT NOT LATER THAN THE 16TH DAY AFTER THE DATE ON WHICH YOU

SIGN THIS CONTRACT. YOU MAY NOT WAIVE THE RIGHT TO CANCEL THIS

CONTRACT. IF YOU CANCEL THIS CONTRACT WITHIN 16 DAYS, YOU ARE NOT

REQUIRED TO PAY ANY CONSIDERATION UNDER THE CONTRACT OR RETURN

ANY CONSIDERATION RECEIVED.

(4) YOU MAY LOSE YOUR ELIGIBILITY TO COMPETE AS AN ATHLETE IN

YOUR SPORT. CANCELLATION OF THIS CONTRACT MAY NOT REINSTATE YOUR

ELIGIBILITY.

(5) IF YOU HAVE AN ATHLETIC DIRECTOR, WITHIN 72 HOURS AFTER

ENTERING INTO THIS CONTRACT BOTH YOU AND YOUR ATHLETE AGENT MUST

NOTIFY YOUR ATHLETIC DIRECTOR.

(b) The notice required under Subsection (a) must be:

(1) printed in not less than 10-point typeface; and

(2) boldfaced, capitalized, underlined, or otherwise set apart

from the surrounding provisions of the contract to make the

notice conspicuous.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Amended by Acts 2003, 78th Leg., ch. 821, Sec. 9, eff. Sept. 1,

2003.

Sec. 2051.205. FILING REQUIREMENTS. (a) A registered athlete

agent shall, not later than the fifth day after the date an

athlete signs an agent contract or financial services contract,

file a copy of the contract with:

(1) the secretary of state; and

(2) if the athlete is a student at an institution of higher

education, the athletic director of the athlete's institution.

(b) If the schedule of fees in an agent or financial services

contract is changed, the athlete agent shall file with the

secretary a copy of the changed contract.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 2051.206. MULTIYEAR CONTRACT FEE. (a) This section

applies only to a multiyear professional sports services contract

negotiated by a registered athlete agent.

(b) A registered athlete agent may not collect during a 12-month

period a fee that exceeds the amount an athlete will receive

during that same 12-month period under the professional sports

services contract negotiated by the athlete agent.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

SUBCHAPTER F. IMPLEMENTATION STANDARDS OF INSTITUTIONS OF HIGHER

EDUCATION

Sec. 2051.251. ADOPTION OF IMPLEMENTATION STANDARDS. (a) An

institution of higher education shall adopt standards relating to

the implementation of this chapter, including specific guidelines

governing the athlete agent interview program sponsored by the

institution under Section 2051.301.

(b) Guidelines adopted under Subsection (a) relating to the

athlete agent interview program must specify:

(1) the scheduling of interview periods;

(2) the duration of an interview period;

(3) the location on the institution's campus for conducting

interviews; and

(4) any terms or conditions under which an athlete agent may

contact an athlete during an interview period.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 2051.252. APPROVAL AND FILING OF STANDARDS. (a) After

adopting implementation standards under Section 2051.251, an

institution of higher education shall:

(1) submit the standards to the institution's athletic council

or other analogous body for approval; and

(2) file a copy of the approved standards with the secretary of

state not later than the 30th day after the date the standards

are approved under Subdivision (1).

(b) If an institution of higher education amends the

implementation standards, the institution shall, not later than

the 30th day after the date the amendment is effective, file a

copy of the amended standards with the secretary.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 2051.253. DESIGNATION OF COMPLIANCE COORDINATOR. An

institution of higher education shall:

(1) designate an individual to serve as a compliance coordinator

for that institution; and

(2) report the name of the compliance coordinator to the

secretary of state in a manner prescribed by the secretary.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 2051.254. WRITTEN REQUEST FOR IMPLEMENTATION STANDARDS. On

receipt of a written request from a registered athlete agent, the

secretary of state or a compliance coordinator designated under

Section 2051.253 shall provide a copy of the implementation

standards adopted by an institution of higher education under

Section 2051.251.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 2051.255. NOTIFICATION OF AVAILABILITY OF IMPLEMENTATION

STANDARDS. (a) The secretary of state shall notify each

registered athlete agent in writing of the availability, on

request, under Section 2051.254 of a copy of the implementation

standards of each institution of higher education.

(b) Notice under Subsection (a) must include a statement that:

(1) the standards adopted by an institution of higher education

specify the policies of that institution relating to the time,

place, and duration of athlete agent interviews conducted on the

institution's campus; and

(2) each institution of higher education has a designated

compliance coordinator who the athlete agent may contact for

additional information.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 2051.256. WRITTEN REQUEST FOR COMPLIANCE COORDINATORS. On

receipt of a written request from a registered athlete agent, the

secretary of state shall provide a copy of the names of the

compliance coordinators designated under Section 2051.253.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

SUBCHAPTER G. ATHLETE AGENT INTERVIEW PROGRAM

Sec. 2051.301. ATHLETE AGENT INTERVIEW PROGRAM. (a) Each

institution of higher education shall sponsor an athlete agent

interview program on the institution's campus.

(b) A registered athlete agent may interview an athlete during

an interview program to discuss:

(1) financial services and advice offered by the athlete agent;

and

(2) the athlete agent's representation of the athlete relating

to marketing the athlete's athletic ability and reputation.

later than the 30th day before the date on which an interview

program sponsored under this section begins, notify each

registered athlete agent in writing of the interview program.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 2051.302. COMPLIANCE COORDINATOR'S DUTIES. Each compliance

coordinator designated under Section 2051.253 shall:

(1) establish the schedule for the athlete agent interview

program sponsored under Section 2051.301 by the coordinator's

institution of higher education;

(2) not later than the 30th day before the date on which the

athlete agent interview program begins, notify each registered

athlete agent, in writing, of the interview program, unless the

secretary of state provides notification under Section

2051.301(c); and

(3) ensure that the coordinator's institution of higher

education and the athletes attending the institution comply with

this chapter and the rules adopted under this chapter.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 2051.303. TIME AND DURATION OF INTERVIEW PROGRAM. An

athlete agent interview program sponsored under this subchapter:

(1) may not continue for more than 30 consecutive business days

as determined by the athlete's institution of higher education;

and

(2) must be conducted during the off-season period before the

completion of the athlete's final year of eligibility.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 2051.304. COMPLIANCE WITH INTERVIEW GUIDELINES. An athlete

agent shall strictly comply with the guidelines adopted under

Section 2051.251 relating to the time, place, and duration of an

athlete agent interview program.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

SUBCHAPTER H. RESTRICTION OF AGENT'S PRACTICE

Sec. 2051.351. PROHIBITIONS. (a) An athlete agent may not:

(1) publish or cause to be published:

(A) false, fraudulent, or misleading information; or

(B) a false, fraudulent, or misleading:

(i) representation;

(ii) notice; or

(iii) advertisement;

(2) provide false information;

(3) make a false promise or representation relating to

employment;

(4) divide fees with or receive compensation from:

(A) a person exempt from registration under this chapter under

Section 2051.005; or

(B) a professional sports league or franchise, including a

representative or employee of the league or franchise;

(5) enter into a written or oral agreement with an employee of

an institution of higher education in which the athlete agent

offers a thing of value to the employee for the referral of

clients by the employee;

(6) offer a thing of value to induce the athlete to enter into

an agreement with the athlete agent in which the athlete agent

will represent the athlete;

(7) except as provided by this chapter, before an athlete

completes the athlete's last intercollegiate sports contest:

(A) directly contact the athlete; or

(B) enter into an oral or written agreement with the athlete for

the athlete agent to represent the athlete;

(8) furnish anything of value to any person other than the

athlete or another registered athlete agent to induce an athlete

to enter into an agreement with the athlete agent;

(9) initiate any contact with an athlete, except as authorized

by this chapter;

(10) fail to retain or permit inspection of the records required

to be retained by Section 2051.352;

(11) predate or postdate an agent contract; or

(12) fail to notify an athlete before the athlete signs an agent

contract that the signing may make the athlete ineligible to

participate in intercollegiate sports.

(b) This section does not prohibit:

(1) an athlete agent from sending written materials to an

athlete relating to the professional credentials or services of

the athlete agent if the athlete agent simultaneously sends a

copy of the materials to the athletic director of the athlete's

institution of higher education or the athletic director's

designee; or

(2) an athlete or an athlete's parent or legal guardian from

contacting an athlete agent to schedule a meeting with the

athlete agent to assess:

(A) the agent's professional proficiency in:

(i) representing the athlete; or

(ii) marketing the athlete's athletic ability or reputation; or

(B) the financial services offered by the athlete agent.

athlete's parent or legal guardian to schedule a meeting to

discuss the services offered by the athlete agent, the athlete

agent shall, before meeting with the athlete or the athlete's

parent or legal guardian, notify the athletic director of the

athlete's institution of higher education or the athletic

director's designee of the proposed meeting.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Amended by Acts 2003, 78th Leg., ch. 821, Sec. 10, eff. Sept. 1,

2003.

Sec. 2051.352. RECORDKEEPING REQUIREMENT. (a) An athlete agent

shall maintain a record of:

(1) each athlete represented by the athlete agent, including:

(A) the name and address of the athlete;

(B) fees paid by the athlete; and

(2) travel and entertainment expenses incurred by the athlete

agent, including expenses for:

(A) food and beverages;

(B) hospitality rooms;

(D) theater and music events; and

(E) transportation, lodging, and admission relating to

entertainment;

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

(4) any direct costs incurred by the athlete agent in recruiting

or soliciting an athlete to enter into an agent contract.

(b) A record of travel and entertainment expenses maintained

under Subsection (a)(2) must state:

(1) the nature of the expense;

(2) the amount of the expense;

(3) the purpose of the expense;

(4) the date and place of the expense; and

(5) the name of each person on whose behalf the expenditure was

made.

under this section to the secretary of state on request.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Amended by Acts 2003, 78th Leg., ch. 821, Sec. 11, eff. Sept. 1,

2003.

Sec. 2051.353. DISCLOSURE REQUIREMENT. An athlete agent shall

disclose the athlete agent's name and address in any advertising

used by the athlete agent.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 2051.354. AGENT LIABILITY FOR VIOLATION OF CHAPTER. A

registered or unregistered athlete agent who violates this

chapter may be subject to:

(1) an administrative penalty imposed under Subchapter J;

(2) forfeiture of the right to payment for a thing of value that

the athlete agent gives to an athlete to induce the athlete to

enter into a contract;

(3) a refund of consideration paid to the athlete agent; and

(4) payment of reasonable attorney's fees and court costs

incurred by an athlete who files suit against an athlete agent

for violation of this chapter.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

SUBCHAPTER I. INVESTIGATION OF AGENTS BY SECRETARY OF STATE

Sec. 2051.401. INVESTIGATIVE AUTHORITY: SUBPOENA AND SUMMONS.

(a) The secretary of state may issue a subpoena or summons to

compel:

(1) the attendance and testimony of a witness; or

(2) the production of:

(A) a book;

(B) an account;

(D) a magnetic or electronic recording;

(E) a paper;

(F) a contract;

(G) correspondence; or

(H) any other record that the secretary determines is relevant

or material to an investigation under this chapter.

(b) If the secretary issues a subpoena or summons under

Subsection (a), the secretary, or an officer designated by the

secretary, may:

(1) administer an oath;

(2) examine a witness; and

(3) receive evidence.

this section is:

(1) confidential and not open to public inspection, except by a

court order; and

(2) exempt from disclosure under Chapter 552, Government Code.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 2051.402. SERVICE OF PROCESS. (a) The secretary of state,

the secretary's authorized agent, a sheriff, or a constable may

serve a subpoena or summons issued by the secretary of state

under Section 2051.401:

(1) on an individual by:

(A) delivering an executed copy of the subpoena or summons to

the individual; or

(B) mailing an executed copy of the subpoena or summons by

registered or certified mail, return receipt requested, to the

individual's:

(i) place of residence; or

(ii) principal place of business; and

(2) on an entity by delivering or mailing a duly executed copy

of the subpoena or summons to an individual for which service

would be appropriate in a civil suit under state law.

(b) Proof of service of process under this section consists of:

(1) a verified return showing the manner of service; or

(2) if the service is made by registered or certified mail,

return receipt requested, the return receipt.

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 athlete agent.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Amended by Acts 2003, 78th Leg., ch. 821, Sec. 12, eff. Sept. 1,

2003.

Sec. 2051.403. ENFORCEMENT OF SUBPOENA AND SUMMONS. (a) The

secretary of state shall refer a person who fails or refuses to

comply with a subpoena or summons issued by the secretary under

Section 2051.401 to the attorney general for enforcement.

(b) On receipt of a referral under Subsection (a), the attorney

general may apply to a district court of Travis County for an

order requiring compliance.

(b), a district court:

(1) shall order compliance if the court determines that good

cause exists for the issuance of the subpoena or summons; and

(2) may modify those requirements of the subpoena or summons

that the court determines are unreasonable.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 2051.404. INTERROGATORIES. (a) Except as provided by

Subsection (b), the secretary of state may serve interrogatories

on an athlete, compliance coordinator, or any person subject to

this chapter, or an officer, director, partner, or associate of

the person, if the interrogatories are reasonable and necessary

to conduct an investigation under this chapter.

(b) The secretary may not serve interrogatories on an athlete

who is not represented by an attorney.

answered:

(1) completely;

(2) in writing;

(3) under oath;

(4) not later than the 30th day after the date the

interrogatories are mailed, or within a time period determined by

the secretary; and

(5) by the individual to whom the interrogatories are directed

or, if the interrogatories are directed to an entity, by an

authorized representative of the entity.

(d) If the answers to interrogatories served under Subsection

(a) disclose a violation of this chapter, the secretary shall

take disciplinary action as provided by Section 2051.405.

(e) The interrogatories and answers to the interrogatories are:

(1) confidential and not open to public inspection, except by a

court order; and

(2) exempt from disclosure under Chapter 552, Government Code.

(f) The secretary may disclose confidential information to a

governmental authority or a quasi-governmental authority.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 2051.405. DISCIPLINARY PROCEDURES; INJUNCTIONS. (a) If

the secretary of state determines that a person has violated this

chapter, the secretary shall:

(1) refer the violation to the attorney general for prosecution;

and

(2) take appropriate disciplinary action, including:

(A) denying an application for registration; or

(B) suspending or revoking a certificate of registration.

(b) If the secretary determines that a person is violating or is

threatening to violate this chapter, the secretary or the

attorney general may file suit in district court in Travis County

to enjoin the violation or threatened violation.

other disciplinary action taken under Subsection (a) is by trial

de novo and is subject to Section 2001.173, Government Code.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

SUBCHAPTER J. ADMINISTRATIVE PENALTY

Sec. 2051.451. ADMINISTRATIVE PENALTY. (a) If the secretary of

state determines that a person regulated under this chapter has

violated this chapter or a rule adopted under this chapter in a

manner that constitutes a ground for disciplinary action under

Section 2051.405, the secretary may assess an administrative

penalty against the person as provided by this subchapter.

(b) The secretary shall determine the amount of a penalty

assessed under Subsection (a), except that the amount may not

exceed $25,000.

the secretary shall consider the seriousness of the violation.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 2051.452. INVESTIGATION AND PRELIMINARY REPORT. (a) If,

after examining a possible violation, including facts relating to

the violation, the secretary of state determines that a person

has committed a violation of this chapter, the secretary shall

issue a preliminary report stating:

(1) the facts on which the determination is based; and

(2) that an administrative penalty will be imposed, including

the amount of the penalty.

(b) The secretary shall, not later than the 10th day after the

date a preliminary report is issued under Subsection (a), send to

the person who is the subject of the report:

(1) a copy of the report; and

(2) notice that the person may request a hearing under Section

2051.453.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 2051.453. PAYMENT OR REQUEST FOR HEARING. (a) A person

who is the subject of a preliminary report issued under Section

2051.452 shall, not later than the 20th day after the date the

report is sent:

(1) pay the administrative penalty to the secretary of state; or

(2) request in writing from the secretary a hearing relating to:

(A) the alleged violation; or

(B) the amount of the penalty.

(b) A person who fails to pay the penalty or request a hearing

as required by Subsection (a) waives the right to request a

hearing under this chapter.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 2051.454. HEARING. (a) If the secretary of state

determines at a hearing conducted under Chapter 2001, Government

Code, that a person has violated this chapter, the secretary

shall:

(1) notify the person in writing of:

(A) the secretary's findings; and

(B) the amount of the administrative penalty; and

(2) enter an order requiring the person to pay the penalty.

(b) A person shall, not later than the 30th day after receiving

notice under Subsection (a):

(1) pay the penalty to the secretary; or

(2) forward the penalty to the secretary for deposit in an

escrow account and request judicial review of:

(A) the secretary's findings; or

(B) the amount of the penalty.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 2051.455. JUDICIAL REVIEW. If judicial review requested

under Section 2051.454 reveals that a person has not violated

this chapter or that the administrative penalty assessed against

a person should be reduced, the secretary of state shall, not

later than the 30th day after the date the judicial determination

becomes final, return the appropriate amount of the penalty to

the person.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 2051.456. RECOVERY OF ADMINISTRATIVE PENALTY. On request

by the secretary of state, the attorney general may file suit

against a person to recover a penalty assessed under Section

2051.451.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

SUBCHAPTER K. CRIMINAL PENALTY

Sec. 2051.501. CRIMINAL OFFENSE. (a) An athlete agent commits

an offense if the agent intentionally or knowingly violates this

chapter or a rule under this chapter.

(b) An offense under this section is a Class A misdemeanor.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

SUBCHAPTER L. CIVIL SUIT BY INSTITUTION OF HIGHER EDUCATION

Sec. 2051.551. CIVIL SUIT. (a) An institution of higher

education adversely affected by an athlete agent's or former

athlete's violation of this chapter may file suit against the

athlete agent or former athlete for damages.

(b) A cause 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 athlete.

under this section is several and not joint.

(d) This chapter does not restrict the rights, remedies, or

defense of any person under any other law.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Amended by Acts 2003, 78th Leg., ch. 821, Sec. 13, eff. Sept. 1,

2003.

Sec. 2051.552. ADVERSELY AFFECTED. An institution of higher

education is adversely affected by an athlete agent's violation

of this chapter if:

(1) the athlete agent's violation causes a national association

for the promotion and regulation of intercollegiate athletics to

disqualify or suspend the institution from participating in

intercollegiate sports contests; and

(2) the disqualification or suspension of the institution causes

the institution to:

(A) lose revenue from media coverage of sports contests;

(B) lose the right to grant athletic scholarships in the sport

in which the institution is disqualified or suspended;

(D) otherwise suffer an adverse financial impact.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 2051.553. RECOVERY. An institution of higher education

that prevails in a civil suit filed under Section 2051.551 may

recover:

(1) actual damages;

(2) exemplary damages;

(3) court costs; and

(4) reasonable attorney's fees.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

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