A1144

ASSEMBLY, No. 1144

STATE OF NEW JERSEY

Introduced Pending Technical Review by Legislative Counsel

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

By Assemblyman COHEN

An Act providing for the regulation of athlete agents, amending P.L.1971, c.60, P.L.1974, c.46 and P.L.1978, c.73, and supplementing Title 45 of the Revised Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. (New section) This act shall be known and may be cited as the "Athlete Agents Regulation Act of 1994."

2. (New section) The Legislature finds and declares that evidence exists of abuses by agents representing athletes and that the public interest requires action to protect athletes and the integrity of athletics.

3. (New section) As used in this act:

"Agent contract" means any contract or agreement pursuant to which an athlete authorizes or empowers an athlete agent to negotiate or solicit on behalf of the athlete with one or more professional sports teams for the employment of the athlete by one or more professional sports teams or to negotiate or solicit on behalf of the athlete for the employment of the athlete as a professional athlete.

"Athlete" means an individual who is a resident of this State and who participates or is eligible to participate in an amateur or professional sport or athletic event.

"Athlete agent" means any person who, as an independent contractor, directly or indirectly, recruits or solicits any athlete to enter into any agent contract or professional sports services contract or for a fee procures, offers, promises, or attempts to obtain employment for any athlete with a professional sports team or as a professional athlete. Athlete agent does not include any employee or other representative of a professional sports team.

"Board" means the New Jersey Athlete Agent Regulatory Board established by section 4 of this act.

"Director" means the Director of the Division of Consumer Affairs in the Department of Law and Public Safety.

"Player associations or organizations" means any association or organization which represents professional athletes in collective bargaining with the management or ownership of professional sports teams or organizations.

"Professional sports services contract" means any contract or agreement pursuant to which an athlete is employed or agrees to render services as a player on a professional sports team or as a professional athlete.

"Resident" means a person who is a legal resident of this State and shall also include a student enrolled in a college or university or in grades 9-12 in a public or private secondary school in this State.

4. (New section) There is created, within the Division of Consumer Affairs in the Department of Law and Public Safety, a board for the regulation of athlete agents in the State of New Jersey to be known as the New Jersey Athlete Agent Regulatory Board. The board shall consist of seven members to be appointed by the Governor with the advice and consent of the Senate: two of whom shall have experience in college athletics; two of whom shall have experience in high school athletics; and three of whom shall have experience counseling professional athletes with regard to legal or financial matters.

Each member of the board shall be a resident of New Jersey. The Governor shall appoint each member for a term of three years, except that of the members first appointed, two shall serve for a term of two years, three shall serve for a term of three years and two shall serve for a term of four years. Any vacancy in the membership of the board shall be filled for the unexpired term in the manner provided by the original appointment. No member of the board may serve more than two successive terms in addition to any unexpired term to which he has been appointed.

5. (New section) Members of the board shall be compensated and reimbursed for expenses and provided with office and meeting facilities pursuant to section 2 of P.L.1977, c.285 (C.45:1-2.5).

6. (New section) The board shall annually elect from among its members a chairperson and a vice-chairperson. The board shall meet twice a year and may hold additional meetings as necessary to discharge its duties.

7. (New section) The board shall:

a. Review the qualifications of applicants for registration;

b. Issue and renew biennial registrations for athlete agents pursuant to this act;

c. Maintain a record of every athlete agent registered in this State, their places of business, places of residence and the date and number of their registration; and

d. Adopt and promulgate rules and regulations pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) necessary to effectuate the purposes of this act, except that the initial rules and regulations shall be promulgated by the director.

8. (New section) There shall be an Executive Director of the board appointed by the director who shall serve at the director's pleasure. The salary of the Executive Director shall be determined by the director within the limits of available funds to hire any assistants as are necessary to administer this act.

9. (New section) No person shall engage in or carry on the occupation of an athlete agent either within the State or with a resident of the State without first registering with the board. Notwithstanding any other provisions of this act, an attorney admitted to practice law in New Jersey who acts as an athlete agent as defined in section 3 of this act shall be required to register with the board as an athlete agent.

10. (New section) A written application for registration shall be made to the board on the form prescribed by the board and shall state the following:

a. The name of the applicant and address of the applicant's residence;

b. The address where the business of the athlete agent is to be conducted;

c. The business or occupation engaged in by the applicant for at least two years immediately preceding the date of application; and

d. Such biographical information on the applicant as may be deemed necessary by the board.

The application for registration shall be accompanied by affidavits or certificates of completion of any and all formal training or practical experience in any one of the following specific areas: contracts, contract negotiation, complaint resolution, arbitration, or civil resolution of contract disputes. The board, in evaluating the applicant's qualifications, may consider any other relevant training, education, or experience to satisfy this requirement.

An attorney admitted to practice law in New Jersey shall submit a certificate of good standing issued by the Supreme Court of New Jersey with the application for registration in lieu of any other affidavits or certificates required in this section.

11. (New section) Upon receipt of an application for registration, the board may evaluate and investigate the education, training, experience, and character of the applicant and may examine the premises designated in the application to verify it to be the principal place of business in which the applicant proposes to conduct business as an athlete agent.

Submission of a certificate of good standing to practice law pursuant to section 10 of this act shall be deemed to satisfy the provisions of this section.

12. (New section) In addition to the provisions of section 8 of P.L.1978, c.73 (C.45:1-21), the board may refuse to grant or may suspend or revoke the registration of an athlete agent upon proof showing by a preponderance of the evidence that the agent or the agent's representative or employee:

a. Had made false or misleading statements of a material nature in the application for registration;

b. Has ever misappropriated funds or engaged in other specific acts such as embezzlement, theft, or fraud which would render the applicant unfit to serve in a fiduciary capacity;

c. Has engaged in such other conduct that has a significant adverse impact on the applicant's credibility, integrity, or competence to serve in a fiduciary capacity;

d. Has engaged in conduct which violates or causes an athlete to violate any rule or regulation promulgated by the National Collegiate Athletic Association or the New Jersey State Interscholastic Athletic Association governing student-athletes and their relationship with athlete agents;

e. Has been convicted of an indictable offense involving illegal gambling;

f. Has been convicted of an offense relating to the profession of an athlete agent in another state; or

g. Is unwilling to swear or affirm that the applicant will comply with such rules and standards of conduct for athlete agents as may from time to time be promulgated by the board.

If an athlete agent is also an attorney admitted to practice law in this State, the board shall advise the Supreme Court of New Jersey in writing of any refusal to grant, or any suspension or revocation of the registration of the athlete agent pursuant to the provisions of this section or the provisions of section 8 of P.L.1978, c.73 (C.45:1-21). In addition, the board may request the Supreme Court of New Jersey to advise the board when the Supreme Court imposes discipline for a violation of the Rules of Professional Conduct upon an attorney who is also registered as an athlete agent.

13. (New section) A registration shall be valid for a period of up to two years. Renewal of a registration shall require the filing of an application for renewal, and a renewal bond, if applicable. A renewal fee shall be paid by the athlete agent at the time of filing such application.

14. (New section) The board may, at its discretion, issue a temporary registration valid for a period not exceeding 90 days subject, where appropriate, to automatic and summary revocation by the board. Otherwise, the conditions for issuance or renewal shall meet the requirements of section 10 of this act.

15. (New section) All applications for registration or renewal shall state the names and addresses of all persons, except bona fide employees on stated salaries, who are financially interested either as partners, associates, or profit sharers in the operation of the business of the athlete agent.

16. (New section) A filing fee to be determined by the board shall be paid at the time the application for issuance of an athlete agent registration is filed. In addition to the fee required for application for issuance of the registration, an athlete agent shall pay to the board biennially a renewal fee which shall accompany the application for renewal. The board shall set the fees required by this section in the amount necessary to generate sufficient revenue to cover the costs of administration and enforcement of this act.

17. (New section) a. An athlete agent shall deposit or have deposited with the board, prior to the issuance of a registration or renewal of a registration, a surety bond in the sum of $100,000.

b. For the purposes of this section, a certificate from an insurance carrier stating that malpractice coverage in the minimum amount of $500,000 is in place shall be considered equivalent to a surety bond. Evidence that such coverage is in full force and effect must be presented to the board upon such terms and conditions as the board may prescribe.

c. For the purposes of this section, a certificate of deposit payable to the board or a savings account assigned to the board in the amount of $100,000 shall be considered equivalent to a surety bond and shall be acceptable to the board upon such terms and conditions as the board may prescribe.

18. (New section) a. Surety bonds shall be payable to the State of New Jersey and shall be conditioned that the person applying for the registration will comply with this act and will pay all sums due any athlete or group of athletes when the applicant or the applicant's representative or employee has received such sums and will pay all damages occasioned to any athlete by reason of intentional or unintentional misstatement, misrepresentation, fraud, deceit, or any unlawful or negligent acts or omissions of the registered athlete agent or the agent's representatives or employees while acting within the scope of their employment.

b. Nothing in this section shall be construed to limit the recovery of damages to the amount of the surety bond, malpractice coverage, certificate of deposit, or savings account.

19. (New section) If any registrant fails to maintain such coverage so as to comply with the provisions of section 17 of this act, the registration issued to the athlete agent shall be suspended until such time as new coverage is obtained. An athlete agent whose registration is suspended pursuant to this section shall not carry on business as an athlete agent during the period of suspension.

20. (New section) Each registration shall contain the following:

a. The name of the registrant;

b. A designation of the address of the place in which the registrant is authorized to carry on business as an athlete agent; and

c. The registration number and date of issuance of the registration.

No registration shall apply to anyone other than the athlete agent to whom it is issued nor to any places other than those designated in the registration.

21. (New section) The board may issue to an eligible person a certificate of convenience to conduct business as an athlete agent where the person registered to conduct the athlete agency business has died or has been declared incompetent by the judgment of a court of competent jurisdiction or has had a conservator appointed for his or her estate by a court of competent jurisdiction. The certificate of convenience may be denominated an estate certificate of convenience.

22. (New section) To be eligible for a certificate of convenience, a person shall be any one of the following:

a. The executor or administrator of the estate of a deceased person registered to conduct the business of an athlete agent;

b. If no executor or administrator has been appointed, the surviving spouse or heir otherwise entitled to conduct the business of the deceased registrant; or

c. The guardian of the estate of an incompetent person registered as an athlete agent or the conservator appointed for the conservation of the estate of an incompetent person registered to conduct the business of an athlete agent.

The estate certificate of convenience shall continue in force for a period not to exceed 90 days and shall be renewable for such period as the board may deem appropriate, pending the disposal of the athlete agent registration or the procurement of a new registration under the provisions of this act.

23. (New section) All agent contracts to be utilized by athlete agents shall be on a form approved by the board. This approval shall not be withheld unless the proposed form of agency contract is unfair, unjust, or oppressive to the athlete. Each form of agency contract, except under the conditions specified in section 38 of this act, shall contain an agreement by the athlete agent to refer any controversy between the athlete and the athlete agent relating to the terms of the agent contract to the board for review. There shall be printed on the face of the agent contract in prominent type the following: "This athlete agent is registered with the New Jersey Athlete Agent Regulatory Board. Registration does not imply approval by the board of the terms and conditions of this contract or the competence of this athlete agent."

24. (New section) The agent contract shall contain in close proximity to the space for the signature of the athlete a notice in at least ten-point type stating:

a. that the athlete forfeits his eligibility to participate in intercollegiate athletics upon entering into the agent contract;

b. that the athlete is required to advise the athletic director of the educational institution which he attends that he has been approached by an athlete agent to enter into an agent contract; and

c. that the athlete has the right to have the agent contract reviewed by an attorney but the athlete is not required to employ the services of an attorney in order to enter into the agent contract.

25. (New section) a. Fees charged by athlete agents to athletes for services rendered by athlete agents acting in the capacity of athlete agents may be negotiated between the parties.

b. Nothing in this section shall be construed to abridge the authority of the Supreme Court to establish fees with respect to any activities deemed to be the practice of law.

26. (New section) A trust fund shall be established when an athlete agent is the recipient of the athlete's salary or other revenue derived from the athlete. An athlete agent who receives any payment on behalf of the athlete shall immediately deposit such payment in a trust fund account or other recognized depository maintained by the athlete agent. The address and location of the trust fund or other recognized depository shall be provided to the athlete and the board. An attorney, acting as an athlete agent, may deposit any payment received on behalf of the athlete in his clients' trust account maintained in a financial institution in New Jersey.

27. (New section) Every athlete agent shall keep records approved by the board, in which shall be entered all of the following:

a. The name and address of each athlete employing the athlete agent;

b. The amount of fees received from each such athlete;

c. The contract entered into between the athlete agent and each such athlete; and

d. Other information which the board may from time to time require.

No athlete agent or his or her representatives or employees shall make any false entry in any such records. All records required by this act shall be kept for a period of seven years. All books, records, and other papers kept pursuant to this act by any athlete agent shall be open to the inspection of the board and its representatives. Every athlete agent shall furnish to the board upon request a true copy of the books, records, and papers kept pursuant to this act, or any portion thereof, and shall make such reports as the board prescribes.

28. (New section) An athlete agent may sell, transfer, or give away any interest in or the right to participate in the profits of the athlete agent upon providing written notice, within 20 days prior to the effective date of the sale, transfer or gift, to the board and to the athlete or athletes represented by the athlete agent, that the person to whom the interest or right to participate is transferred has an interest in or is involved in the sport or sports in which the athlete or athletes whose interests have been transferred participate.

29. (New section) No athlete agent shall have an ownership or financial interest in any entity which is directly involved in the same sport as an athlete with whom the athlete agent has entered into an agent contract or for whom the athlete agent is attempting to negotiate a professional sports services contract.

30. (New section) a. If an athlete agent also advises an athlete regarding the investment of funds, the athlete agent shall disclose to the athlete and to the board any ownership interest the athlete agent has in any entity used by the athlete agent in giving such advice and any commissions or fees which are being paid to the athlete agent as a result of investments which are made by the athlete.

b. No athlete agent shall act on behalf of an athlete as a "broker-dealer" or "investment advisor," as defined in section 2 of P.L.1967, c.93 (C.49:3-49), unless the athlete agent complies with the requirements of P.L.1967, c.93 (C.49:3-47 et seq.).

31. (New section) No athlete agent shall knowingly enter into a contract with an athlete containing any term or condition which, if complied with, would be in violation of law.

32. (New section) No athlete agent shall publish or cause to be published any false, fraudulent, or misleading information, representation, notice, or advertisement. All advertisements of an athlete agent by means of cards, circulars, or signs and in newspapers and other publications and all letterheads, receipts, and other papers shall be printed and contain the registered name and address of the athlete agent and a notation signifying that the athlete agent is a registered athlete agent and, if applicable, may also indicate that the athlete agent is an attorney admitted to practice law in this State. No athlete agent shall give any false information or make any false promises or representations concerning any employment to any athlete.

33. (New section) a. No athlete agent shall divide fees with a professional sports league or franchise, its representatives, or employees.

b. No athlete agent shall enter into any agreement whereby the athlete agent offers anything of value, including, but not limited to, the rendition of free or reduced fees for legal services, to any employee of a university or educational institution in return for the referral of any clients by that employee.

c. No employee of a union or players association connected with a professional sports league shall own or participate in any of the revenues of an athlete agent.

34. (New section) If an athlete agent collects a fee or expenses from an athlete for purposes of obtaining employment for the athlete and the athlete fails to procure such employment, the athlete agent shall be limited as to the fee he collects from the athlete in the following manner:

a. The athlete agent shall receive reimbursement for all reasonable out-of-pocket expenses incurred by the athlete agent during the course of his representation of the athlete; and

b. If the athlete received a bonus for the signing of a professional sports services contract, the athlete agent may be entitled to a fee negotiated between the parties.

c. Nothing in this section shall be construed to abridge the authority of the Supreme Court to establish fees with respect to any activities deemed to be the practice of law.

35. (New section) All actions brought in any court against any athlete agent may be brought in the name of the person damaged by the athlete agent, and the person damaged may name the surety, malpractice carrier, or holder of the savings account or certificate of deposit as an additional party. The action may be transferred and assigned as any other claim for damages. The amount of damages claimed by the person so damaged, and not the penalty named in the bond, malpractice coverage, savings account, or certificate of deposit, determines the jurisdiction of the court in which the action is to be brought.

36. (New section) When an athlete agent has departed from the State with intent to defraud creditors or to avoid service of summons in an action brought under this act, service shall be made upon the surety, malpractice carrier or holder of the savings account or certificate of deposit of an athlete agent. A copy of the summons shall be mailed to the athlete agent at the last known address of his residence and also at the place where the business of the athlete agent was conducted as shown by the records of the board. Service is complete as to the athlete agent, after mailing, at the expiration of the time prescribed by law for service of summons in the particular court in which suit is brought.

37. (New section) a. In cases of controversy arising under this act, the parties involved shall refer the matters in dispute to the board, which shall hear and determine the same subject to an appeal.

b. The board may certify without a hearing that there is no controversy within the meaning of this section if the board has by investigation established that there is no dispute. Service of the certification shall be made upon all parties concerned by registered or certified mail with return receipt requested and the certification shall be conclusive ten days after the date of mailing if no objection has been filed with the board during that period.

38. (New section) Notwithstanding section 23 of this act, a provision in an agent contract providing for the decision by arbitration of any controversy under the contract or as to its existence, validity, construction, performance, nonperformance, breach, operation, continuance, or termination, shall be valid if all of the following occur:

a. The provision is contained in a contract between an athlete agent and an athlete for whom the athlete agent under the contract undertakes to endeavor to secure employment;

b. The provision is inserted in the contract pursuant to any rule, regulation, or contract of a bona fide labor union regulating the relations of its members to an athlete agent;

c. The contract provides for reasonable notice to the board of the time and place of all arbitration hearings; and

d. The contract provides that the board or its authorized representative has the right to attend all arbitration hearings.

If there is such an arbitration provision in a contract, the contract need not provide that the athlete agent agrees to refer any controversy between the athlete and the athlete agent regarding the terms of the contract to the board for review, and section 37 of this act shall not apply to controversies pertaining to the contract.

39. (New section) Any agent contract which is negotiated by an athlete agent who has failed to comply with section 9 of this act is void and unenforceable.

40. Section 1 of P.L.1971, c.60 (C.45:1-2.1) is amended to read as follows:

1. The provisions of this act shall apply to the following boards and commissions: the New Jersey State Board of Accountancy, the New Jersey State Board of Architects, the New Jersey State Board of Cosmetology and Hairstyling, the Board of Examiners of Electrical Contractors, the New Jersey State Board of Dentistry, the State Board of Mortuary Science of New Jersey, the State Board of Professional Engineers and Land Surveyors, the State Board of Marriage Counselor Examiners, the State Board of Medical Examiners, the New Jersey Board of Nursing, the New Jersey State Board of Optometrists, the State Board of Examiners of Ophthalmic Dispensers and Ophthalmic Technicians, the Board of Pharmacy, the State Board of Professional Planners, the State Board of Psychological Examiners, the State Board of Examiners of Master Plumbers, the New Jersey Real Estate Commission, the State Board of Shorthand Reporting, the State Board of Veterinary Medical Examiners, the Radiologic Technology Board of Examiners, the Acupuncture Examining Board, the State Board of Chiropractic Examiners, the State Board of Respiratory Care, the State Real Estate Appraiser Board, the State Board of Social Work Examiners, [and] the State Board of Public Movers and Warehousemen and the New Jersey Athlete Agent Regulatory Board.

(cf: P.L.1993, c.365, s.18)

41. Section 1 of P.L.1974, c.46 (C.45:1-3.1) is amended to read as follows:

1. The provisions of this act shall apply to the following boards and commissions: the New Jersey State Board of Accountancy, the New Jersey State Board of Architects, the New Jersey State Board of Cosmetology and Hairstyling, the Board of Examiners of Electrical Contractors, the New Jersey State Board of Dentistry, the State Board of Mortuary Science of New Jersey, the State Board of Professional Engineers and Land Surveyors, the State Board of Marriage Counselor Examiners, the State Board of Medical Examiners, the New Jersey Board of Nursing, the New Jersey State Board of Optometrists, the State Board of Examiners of Ophthalmic Dispensers and Ophthalmic Technicians, the Board of Pharmacy, the State Board of Professional Planners, the State Board of Psychological Examiners, the State Board of Examiners of Master Plumbers, the State Board of Shorthand Reporting, the State Board of Veterinary Medical Examiners, the Radiologic Technology Board of Examiners, the Acupuncture Examining Board, the State Board of Chiropractic Examiners, the State Board of Respiratory Care, the State Real Estate Appraiser Board, [and] the State Board of Social Work Examiners, and the New Jersey Athlete Agent Regulatory Board.

(cf: P.L.1991, c.134, s.17)

42. Section 2 of P.L.1978, c.73 (C.45:1-15) is amended to read as follows:

2. The provisions of this act shall apply to the following boards and all professions or occupations regulated by or through such boards: the New Jersey State Board of Accountancy, the New Jersey State Board of Architects, the New Jersey State Board of Cosmetology and Hairstyling, the Board of Examiners of Electrical Contractors, the New Jersey State Board of Dentistry, the State Board of Mortuary Science of New Jersey, the State Board of Professional Engineers and Land Surveyors, the State Board of Marriage Counselor Examiners, the State Board of Medical Examiners, the New Jersey Board of Nursing, the New Jersey State Board of Optometrists, the State Board of Examiners of Ophthalmic Dispensers and Ophthalmic Technicians, the Board of Pharmacy, the State Board of Professional Planners, the State Board of Psychological Examiners, the State Board of Examiners of Master Plumbers, the State Board of Shorthand Reporting, the State Board of Veterinary Medical Examiners, the Acupuncture Examining Board, the State Board of Chiropractic Examiners, the State Board of Respiratory Care, the State Real Estate Appraiser Board, [and] the State Board of Social Work Examiners, and the New Jersey Athlete Agent Regulatory Board.

(cf: P.L.1991, c.134, s.14)

43. Sections 1 through 7 of this act shall take effect immediately, with the remaining sections taking effect 180 days following enactment.

STATEMENT

This bill, designated the "Athlete Agents Regulation Act of 1994," establishes the New Jersey Athlete Agent Regulatory Board within the Division of Consumer Affairs in the Department of Law and Public Safety. It is responsible for the registration and regulation of athlete agents. Under the provisions of the bill, the term "athlete agent" is defined as any person who, as an independent contractor, directly or indirectly recruits or solicits any athlete to enter into any agent or professional sports services contract, or for a fee procures, offers, promises, or attempts to obtain employment for any athlete with a professional sports team or as a professional athlete. The term "athlete agent" does not include any employee or other representative of a professional sports team. An "athlete" is any individual who is a resident of this State and who participates or is eligible to participate in an amateur or profesional sport or athletic event.

The bill provides that no individual shall engage in the occupation of athlete agent within this State or with a resident of New Jersey without first registering with the board. An attorney admitted to practice law in New Jersey who acts as an athlete agent is required to register with the board as an athlete agent.

The board shall consist of seven members with an interest in college athletics to be appointed by the Governor with the advice and consent of the Senate. Two of the members of the board shall have experience in college athletics, two shall have experience in high school athletics, and three shall have experience counseling professional athletes with regard to legal or financial matters. Under the provisions of the bill, the board has the power to: review the qualifications of applicants for registration; issue and renew registrations; and refuse to grant or may suspend or revoke the registration of an athlete agent if the athlete agent has violated any provision of section 8 of P.L.1978, c.73 (C.45:1-21), has engaged in conduct involving certain civil or criminal offenses, or which violates from a standard requiring proof to the satisfaction of the board, to a standard of proof which requires the rules of the National Collegiate Athletic Association (NCAA) or the New Jersey State Interscholastic Athletic Association governing student-athletes and their relationship with athlete agents. The standard of proof for the board's revocation, suspension or refusal to grant a registration to an athlete agent requires a showing by a preponderance of the evidence.

Athlete agents are required to deposit a surety bond in the sum of $100,000 with the board. A certificate from an insurance carrier stating that malpractice coverage in the minimum amount of $500,000 is in place, a certificate of deposit in the amount of $100,000 payable to the board or a savings account in the amount of $100,000 assigned to the board shall be considered equivalent to the surety bond.

The bill further provides that all agent contracts to be utilized by athlete agents shall be on a form approved by the board and requires that each contract contain a notice, in at least ten-point type, stating that the athlete forfeits his eligibility to participate in intercollegiate athletics by entering into an agent contract. The bill provides that the athlete agent's fee may be negotiated between the parties. If the athlete agent is the recipient of the athlete's salary, a trust fund must be established. The bill requires that the athlete agent deposit any other revenue of the athlete into the trust fund. The address of the trust fund is to be provided to the board. If an athlete agent collects a fee from an athlete for the purpose of obtaining employment for the athlete and the athlete fails to procure such employment, the fee of the athlete agent is limited to reasonable out-of-pocket expenses and, if the athlete agent received a signing bonus, the athlete agent may be entitled to a fee negotiated between the parties.

No athlete agent may sell, transfer or give away any interest in the profits of the athlete agent without providing written notice to the board. This notice also shall be sent to the athlete. The bill requires that the person to whom the interest or right to participate is given have an interest in or be involved in the sport or sports in which the athlete or athletes whose interests have been transferred participate.

An athlete agent must not have an interest in any entity which is directly involved in the same sport as an athlete with whom he has a contract. When advising a client regarding investment of funds, an athlete agent must disclose any ownership interest that he has in any entity used by him in giving such advice and any commissions or fees he may receive as a result of such investments. This disclosure shall be made to the athlete and to the board. An athlete agent is prohibited from dividing fees with a professional sports league or franchise or paying an employee of a university or educational institution for the referral of clients.

Athlete agents would be subject to the provisions of the uniform enforcement act for professional boards, P.L.1978, c.73 (C.45:1-14 et seq.).

The bill also requires athlete agents to comply with all requirements of the State "Uniform Securities Law (1967)," P.L.1967, c.93 (C.49:3-47 et seq.), if athlete agents act as investment advisors or broker-dealers as defined in that law.

Finally, no employee of a union or players' association connected with a professional sports league shall own or participate in any of the revenues of an athlete agent.

Provides for the registration and regulation of athlete agents.