TITLE 1.ADMINISTRATION

Part 4. OFFICE OF THE SECRETARY OF STATE

Chapter 78. ATHLETE AGENTS

Subchapter A. REGISTRATION

1 TAC §78.1, §78.11

The Office of the Secretary of State proposes amendments to Subchapter A, concerning athlete agent registrations by amending §78.1 and §78.11. The purpose of the amendments is to implement amendments to Chapter 2051 of the Occupations Code that were made by the 78th Texas Legislature in Senate Bill 292, which will be effective on September 1, 2003.

Guy Joyner, Chief, Legal Support Unit, Statutory Documents Section has determined that for the first five year period that the proposed amendments are in effect there will be no fiscal implication for state government as a result of enforcing the amendments. There is no effect on local government, large businesses, small businesses or micro-businesses. There is no anticipated additional economic cost to individuals who are required to comply with the amendments as proposed. There is no anticipated impact on local employment.

Mr. Joyner also has determined that for each year of the first five years that the amendments are in effect the public benefit anticipated as a result of enforcing the amendments will be to clarify that, on or after September 1, 2003, an athlete agent who is registered or certified as an athlete agent in another state may register in this state by submitting a copy of that state's application.

Comments on the proposed amendments may be submitted to Guy Joyner, Chief, Legal Support Unit, Statutory Documents Section, P.O. Box 12887, Austin, Texas 78711-2887.

The amendments are proposed under the Texas Government Code, §2001.004(1) and §2001.006(b) and the Athlete Agents Act, Texas Occupations Code, §2051.051(b) which provide the Secretary of State with the authority to prescribe and adopt rules.

The amendment affects the Texas Occupations Code, §2051.101 and §2051.108.

§78.1.Registration of Athlete Agents.

(a) The application for registration will be accepted for filing only [ once ] upon submission of a completed registration form and payment of the applicable filing fee stated in §78.21 of this title (relating to Filing Fees).

(b) Except as provided in subsection (c) of this section, an application [ Application ] for an athlete agent shall be made on forms prescribed by the secretary of state [ entitled registration of athlete agent ]. The form or specifications pertaining to the prescribed form may be obtained by writing to the Statutory Documents Section, Office of the Secretary of State, P.O. Box 12887, Austin, Texas 78711. The form may also be found on the Secretary of State's website at www.sos.state.tx.us.

(c) A person who holds a certificate of registration or license as an athlete agent in another state may submit a copy of the other state application and certificate or license instead of submitting the application required by 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 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 Chapter 2051 of the Occupations Code; and

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

(d) [ (c) ] The registration under the Act is valid for one year from the date of issuance. When application for registration is made and the registration process has not been completed, the secretary of state may issue a provisional registration certificate valid for not more than 90 days.

(e) [ (d) ] An agent that is a corporation, an association, a partnership, a limited liability company, or other entity, and not an individual or sole proprietorship, shall file a statement setting forth the names and addresses of all individuals who will recruit or solicit an athlete to enter into an agent contract, a professional sports services contract, or a financial services contract with the agent. The statement shall be filed on a form prescribed by the secretary of state and available from the Statutory Documents Section referenced previously.

§78.11.Renewal for Registration of Athlete Agent.

(a) Except as provided in subsection (b) of this section, an application [ Application ] for renewal to be an athlete agent shall be made on forms prescribed by the secretary of state [ entitled renewal application of athlete agent ]. A copy of the prescribed form or the requirements of the prescribed form may be obtained by writing to the Statutory Documents Section, Office of the Secretary of State, P.O. Box 12887, Austin, Texas 78711. The form may also be found on the Secretary of State's website at www.sos.state.tx.us.

(b) A person who has submitted an application for renewal of registration or license 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 Chapter 2051 of the Occupations Code; and

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

(c) [ (b) ] A renewal application for an athlete agent shall be submitted to the secretary of state on or before the expiration of the registration term.

(d) [ (c) ] Renewal under the Act is valid for one year from the date of issuance. When application for renewal is made and the renewal process has not been completed, the secretary of state may issue a provisional renewal certificate valid for 90 days.

(e) [ (d) ] An agent that is a corporation, an association, a partnership, a limited liability company, or other entity, and not an individual or sole proprietorship, shall file a statement with the renewal application setting forth the names and addresses of all individuals who will recruit or solicit an athlete to enter into an agent contract, a professional sports services contract, or a financial services contract with the agent. The statement shall be filed on a form prescribed by the secretary of state and available from the Statutory Documents Section referenced previously.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on August 6, 2003.

TRD-200304792

Geoffrey S. Connor

Assistant Secretary of State

Office of the Secretary of State

Earliest possible date of adoption: September 21, 2003

For further information, please call: (512) 475-0775


Subchapter C. CONTRACTS

1 TAC §78.51

The Office of the Secretary of State proposes amendments to Subchapter C, concerning athlete agent contracts by amending §78.51. The purpose of the amendments is to implement amendments to Chapter 2051 of the Occupations Code that were made by the 78th Texas Legislature in Senate Bill 292, which will be effective on September 1, 2003.

Guy Joyner, Chief, Legal Support Unit, Statutory Documents Section has determined that for the first five year period that the proposed amendments are in effect there will be no fiscal implication for state government as a result of enforcing the amendments. There is no effect on local government, large businesses, small businesses or micro-businesses. There is no anticipated additional economic cost to individuals who are required to comply with the amendments as proposed. There is no anticipated impact on local employment.

Mr. Joyner also has determined that for each year of the first five years that the amendments are in effect the public benefit anticipated as a result of enforcing the amendments will be to clarify the type of information that must be included in an athlete agent contract, on or after September 1, 2003.

Comments on the proposed amendments may be submitted to Guy Joyner, Chief, Legal Support Unit, Statutory Documents Section, P.O. Box 12887, Austin, Texas 78711-2887.

The amendments are proposed under the Texas Government Code, §2001.004(1) and §2001.006(b) and the Athlete Agents Act, Texas Occupations Code, §2051.051(b) which provide the Secretary of State with the authority to prescribe and adopt rules.

The amendments affect the Texas Occupations Code, §2051.203 and §2051.204.

§78.51.Contract Form.

(a) The secretary of state has the authority to approve the form of all agent and financial services contracts. All such contracts shall:

(1) include the amount and method of computing the fees the agent may charge to and collect from the athlete and a description of the various services to be rendered in return for each fee;

(2) specify any other consideration the athlete agent received or will receive from any other source for entering into the contract; or for providing the services;

(3) identify 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 contract;

(4) [ (2) ] contain the disclosure statements specified in the Athlete Agents Act, §5(b)(1), (2), (3), (4) and (5) [ (3) ];

(5) [ (3) ] indicate the date that the athlete signs the contract;

(6) [ (4) ] identify the institution of higher education where the athlete attended and participated in intercollegiate sports contests ; and [ . ]

(7) specify the time-period covered by the contract.

(b) (No change.)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on August 6, 2003.

TRD-200304793

Geoffrey S. Connor

Assistant Secretary of State

Office of the Secretary of State

Earliest possible date of adoption: September 21, 2003

For further information, please call: (512) 475-0775