HB540 Alabama 2013 Session

Summary

Primary Sponsor

Jack Williams

Republican

Session

Regular Session 2013

Title

Athlete Agents, student athletes, negotiating enrollment at specific educational institutions prohibited, criminal penalties, registration with proof of league players association required, commission authorized to issue reprimands and additional penalties, Secs. 8-26A-2, 8-26A-4, 8-26A-5, 8-26A-6, 8-26A-9, 8-26A-10, 8-26A-11, 8-26A-13, 8-26A-14, 8-26A-15, 8-26A-17, 8-26A-30 am'd

Summary

HB540 tightens Alabama's athlete-agent rules by banning enrollment-negotiation for student-athletes, mandating league certification and bonds, expanding registration and penalties, and widening the Alabama Athlete Agents Commission.

What This Bill Does

If passed, the bill would bar an athlete agent from negotiating enrollment at a specific educational institution for a student-athlete and require certification by the sport's professional league players' association. It would revise registration requirements, add fees, require a $25,000 bond in certain cases, and authorize reprimands or censures, plus a ban after a third violation. It also expands the commission membership to include representatives from Birmingham Southern College and Samford University, strengthens contract disclosure and notification rules, and introduces stricter penalties for agents and student-athletes who violate the act.

Who It Affects

• Student-athletes who would gain stronger protections against aggressive recruitment, must be informed of agency contracts, and could face penalties for certain misconduct; they also face heightened consequences if an agent or others violate the act.
• Athlete agents who must register, be certified, post a bond when required, keep detailed records, follow contract disclosure rules, and face criminal and administrative penalties (including possible loss of license) for violations.

Key Provisions

• Prohibits an athlete agent from negotiating enrollment for a student-athlete at a particular educational institution.
• Requires certification by the corresponding professional league players' association to be eligible as an athlete agent; imposes a $25,000 surety bond if no league association exists.
• Revises registration procedures and fees; allows out-of-state registration and recognition of out-of-state certificates; requires extensive applicant information and background checks; grants the Alabama Athlete Agents Commission authority to reprimand, censure, and bar license after a third violation.
• Adds representatives from Birmingham Southern College and Samford University to the Alabama Athlete Agents Commission; outlines terms, diversity goals, and operational rules for the commission.
• Mandates detailed agency contracts with disclosures on compensation, services, expenses, duration, and a conspicuous warning about eligibility; requires a 14-day cancellation option and notification to athletic directors and head coaches within 72 hours.
• Requires agents to retain records for five years and provide access to the commission; requires notice to athletic directors and head coaches of agency contracts.
• Establishes penalties for violations: agent violations can be Class B or C felonies or misdemeanors; student-athlete violations carry Class A misdemeanor charges and mandatory community service; creates administrative penalties of up to $25,000 per violation.
• Provides for appeals under the Alabama Administrative Procedure Act and administers enforcement through the Alabama Athlete Agents Regulatory Commission; introduces annual reporting and sunset provisions.
• Effective date is the first day of the third month after passage and governor approval; bill includes local-funds spending language but is treated as exempt from certain local-funding requirements due to specified exceptions.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Athlete Agents