Relating to prohibited conduct by athlete agents and making penalties applicable

This bill relates to prohibited conduct by athlete agents under Code chapter 9A. The bill strikes language prohibiting an agent from furnishing anything of value to a student athlete before the athlete enters into an agency contract and also prohibiting furnishing anything of value to an individual other than the athlete or another registered athlete agent. The bill instead prohibits furnishing anything of value to an athlete or another individual, if doing so may result in loss of the athlete’s eligibility to participate in the athlete’s sport, unless two actions occur. The agent must notify the athletic director of the educational institution at which the athlete is enrolled, or at which the agent has reasonable grounds to believe the athlete intends to enroll, prior to the next scheduled athletic event in which the athlete may participate and not later than hours after furnishing the thing of value. The athlete or, if the athlete is a minor, a parent or guardian of the athlete, must also acknowledge to the agent in a record that receipt of the thing of value may result in the loss of the athlete’s eligibility to participate in the athlete’s sport. The bill prohibits an agent from encouraging another individual to engage in conduct prohibited for agents, or from encouraging another individual to assist any other individual in engaging in conduct prohibited for agents. The bill modifies prohibited conduct, other than giving materially false or misleading information or making a materially false promise or representation, by prohibiting such conduct when engaged in intentionally, rather than with the intent to influence an athlete or the athlete’s parent or guardian to enter into an agency contract. By operation of law, a violation of these requirements by an athlete agent is a serious misdemeanor. A serious misdemeanor is punishable by confinement for no more than one year and a fine of at least $430 but not more than $2,560. A violation may also result in a civil action for damages, a civil penalty of up to $50,000, or the secretary of state refusing to issue, limiting, suspending, revoking, or refusing to renew a certificate of registration as an athlete agent.