SB 5

To amend Section 8-26B-14 of the Code of Alabama 1975, relating to athlete agents; to allow certain athlete agents registered in this state to pay certain expenses of a student athlete or the family of the athlete prior to signing an agency contract with the agent.

Section 1

Section 8-26B-14 of the Code of Alabama 1975, is amended to read as follows:

§8-26B-14.

(a) An Except as otherwise provided in subsection (c), an athlete agent, with the intent to influence a student athlete or, if the athlete is a minor, a parent or guardian of the athlete, to enter into an agency contract, may not take any of the following actions or encourage any other individual to take or assist any other individual in taking any of the following actions on behalf of the agent:

(1) give materially false or misleading information or make a materially false promise or representation;

(2) furnish anything of value to the athlete before the athlete enters into the contract; or

(3) furnish anything of value to an individual other than the athlete or another registered athlete agent.

(b) An athlete agent may not intentionally do any of the following or encourage any other individual to do any of the following on behalf of the agent:

(1) initiate contact, directly or indirectly, with a student athlete or, if the athlete is a minor, a parent or guardian of the athlete, to recruit or solicit the athlete, parent, or guardian to enter an agency contract unless registered under this [act];

(2) fail to create or retain or to permit inspection of the records required by Section 13;

(3) fail to register when required by Section 4;

(4) provide materially false or misleading information in an application for registration or renewal of registration;

(5) predate or postdate an agency contract; or

(6) fail to notify a student athlete or, if the athlete is a minor, a parent or guardian of the athlete, before the athlete, parent, or guardian signs an agency contract for a particular sport that the signing may make the athlete ineligible to participate as a student athlete in that sport.

(c)(1) In this subsection, "certified athlete agent" means an athlete agent registered under this [act] who is certified to be an athlete agent in a particular sport by a national association that promotes or regulates intercollegiate athletics and establishes eligibility standards for participation by a student athlete in that sport.

(2) A certified athlete agent may pay expenses incurred before the signing of an agency contract by a student athlete, a family member of the student athlete, and an individual of a class of individuals authorized to receive the expenses by the national association that certified the agent if the expenses are:

a. for the benefit of an athlete who is a member of a class of athletes authorized to receive the benefit by the national association that certified the agent;

b. of a type authorized to be paid by a certified agent by the national association that certified the agent; and

c. for a purpose authorized by the national association that certified the agent."

Section 2

This act shall become effective immediately following its passage and approval by the Governor, or its otherwise becoming law.