Sec. 3. Oversight of athlete agents and third-party licensees
1,046 words·~5 min read·
/bill/117/hr/3379/ih/section-3·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
It shall be unlawful for an athlete agent to enter into an agency contract with a student athlete, or to directly or indirectly recruit or solicit a student athlete to enter into an agency contract, unless such athlete agent is a registered athlete agent. It shall be unlawful for a third-party licensee to license publicity rights from any student athlete or group of student athletes, unless such third-party licensee is a registered third-party licensee. The Board shall adopt rules that— provide for how athlete agents and third-party licensees may register with the Corporation; and govern the conduct of registered athlete agents and registered third-party licensees.
The rules adopted under paragraph
(1)shall require each registered athlete agent and each registered third-party licensee to file with the Corporation a biannual disclosure that lists each agency contract or name, image, and likeness agreement entered into by such athlete agent or third-party licensee during the period covered by the disclosure and summarizes the material terms of such contract or agreement, including any terms relating to price or compensation. The rules adopted under paragraph
(1)shall require each registered athlete agent and each registered third-party licensee to take and pass, at least every 2 years, a compliance test developed by the Corporation that evaluates— the ability of the athlete agent or third-party licensee to comply with the rules adopted under paragraph
(1)and approved under paragraph (6); and the compliance of the athlete agent or third-party licensee with such rules during the preceding 2-year period. The rules adopted under paragraph
(1)shall prohibit a registered athlete agent or registered third-party licensee from entering into an agency contract or name, image, and likeness agreement with a student athlete unless such contract or agreement— has a term of not more than 5 years; and permits either party to terminate such contract or agreement without penalty at any time before the end of the term of such contract or agreement. The rules adopted under paragraph
(1)may require a registered athlete agent or registered third-party licensee to submit a dispute with a student athlete under an agency contract or name, image, and likeness agreement to arbitration by a neutral party. A rule adopted under paragraph
(1)or any amendment to or repeal of such a rule (in this paragraph referred to as a proposed rule ) may not take effect unless such proposed rule has been approved by the Commission. The Board shall file with the Commission, in accordance with such rules as the Commission may prescribe, copies of any proposed rule. The Commission shall publish a proposed rule filed under subparagraph
(B)and provide interested persons an opportunity to comment. Not later than 45 days after a proposed rule is published under subparagraph (C), the Commission shall approve or disapprove the proposed rule. The Commission shall approve a proposed rule if the Commission finds that the proposed rule is consistent with the requirements and purposes of this Act. The Corporation shall maintain, and make publicly available on the website of the Corporation, a searchable and updated database of registered athlete agents and registered third-party licensees, including the biannual disclosures filed by each such agent or licensee under subsection (b)(2). The Corporation may investigate violations of subsection
(a)and the rules approved under subsection (b)(6). The Board may issue subpoenas requiring the attendance and testimony of witnesses and the production of any evidence relating to any matter that the Corporation is empowered to investigate by paragraph (1). The attendance of witnesses and the production of evidence may be required from any place within the United States at any designated place of hearing within the United States. If a person refuses to obey a subpoena issued under subparagraph (A), the Board may apply to a United States district court for an order requiring such person to appear before the Board to give testimony, produce evidence, or both, relating to the matter under investigation. The application may be made within the judicial district where the hearing is conducted or where such person is found, resides, or transacts business. Any failure to obey the order of the court may be punished by the court as civil contempt. The subpoenas of the Board shall be served in the manner provided for subpoenas issued by a United States district court under the Federal Rules of Civil Procedure for the United States district courts. All process of any court to which application is made under subparagraph
(B)may be served in the judicial district in which the person required to be served resides or may be found. If, after notice to a registered athlete agent or a registered third-party licensee and an opportunity for such agent or licensee to respond, the Board finds that such agent or licensee has violated a rule approved under subsection (b)(6), the Board may suspend the registration of such agent or licensee for not more than 3 years. In accordance with such rules as the Commission may prescribe, any registered athlete agent or registered third-party licensee subject to a final decision by the Board under paragraph
(1)may obtain review by the Commission of such decision. The Commission may uphold or reverse such decision in whole or in part, including by reducing the period of any suspension of the registration of the athlete agent or third-party licensee. In any review of a decision of the Board under subparagraph (A), except when the Commission considers it necessary for the Commission to review the decision de novo— the findings of the Board as to the facts, if supported by evidence, shall be conclusive; and the Commission shall apply the same standard of review as a reviewing court under section 706 of title 5, United States Code. If the Board becomes aware of a violation or potential violation of Federal law by an athlete agent, third-party licensee, institution of higher education, intercollegiate athletics association, conference, or student athlete, the Board shall refer the matter to the appropriate Federal agency. The Corporation shall— conduct studies to develop best practices and templates for agency contracts and name, image, and likeness agreements; and make the best practices and templates developed under paragraph (1), including any updates to such best practices and templates, publicly available on the website of the Corporation.