MISSISSIPPI LEGISLATURE
2022 Regular Session
To: Judiciary, Division B; Accountability, Efficiency, Transparency
By: Senator(s) Harkins
AN ACT TO AMEND SECTION 73-42-3, MISSISSIPPI CODE OF 1972, TO REVISE DEFINITIONS; TO AMEND SECTION 73-42-7, MISSISSIPPI CODE OF 1972, TO CLARIFY WHEN A PERSON MAY ACT AS AN ATHLETE AGENT BEFORE REGISTRATION; TO AMEND SECTION 73-42-9, MISSISSIPPI CODE OF 1972, TO REQUIRE ADDITIONAL INFORMATION FROM AN APPLICANT FOR REGISTRATION AS AN ATHLETE AGENT; TO AMEND SECTION 73-42-11, MISSISSIPPI CODE OF 1972, TO CLARIFY GROUNDS FOR DENIAL OF REGISTRATION AND PROCEDURE FOR RENEWAL; TO AMEND SECTION 73-42-13, MISSISSIPPI CODE OF 1972, TO SPECIFY GROUNDS FOR DENIAL, SUSPENSION, REVOCATION OR REFUSAL TO RENEW REGISTRATION; TO AMEND SECTION 73-42-17, MISSISSIPPI CODE OF 1972, TO REVISE THE AUTHORITY TO CHARGE ADDITIONAL FEES; TO AMEND SECTION 73-42-19, MISSISSIPPI CODE OF 1972, TO CLARIFY CONTRACTUAL REQUIREMENTS FOR AGENCY CONTRACTS; TO AMEND SECTION 73-42-21, MISSISSIPPI CODE OF 1972, TO SPECIFY REQUIREMENTS FOR NOTICE TO EDUCATIONAL INSTITUTIONS; TO AMEND SECTION 73-42-23, MISSISSIPPI CODE OF 1972, TO RECOGNIZE RIGHTS OF PARENTS OR GUARDIANS OF MINORS; TO AMEND SECTION 73-42-27, MISSISSIPPI CODE OF 1972, TO CLARIFY THE ACTS PROHIBITED BY AN ATHLETE AGENT AND TO AUTHORIZE PAYMENT OF CERTAIN EXPENSES OF THE STUDENT-ATHLETE; TO AMEND SECTION 73-42-31, MISSISSIPPI CODE OF 1972, TO RECOGNIZE A STUDENT ATHLETE'S RIGHT TO BRING AN ACTION; TO AMEND SECTION 73-42-33, MISSISSIPPI CODE OF 1972, TO REVISE THE MAXIMUM CIVIL PENALTY; TO AMEND SECTION 73-42-34, MISSISSIPPI CODE OF 1972, TO CONFORM WITH VENUE REQUIREMENTS FOR CERTAIN SUSPENSIONS; TO CREATE NEW SECTION 73-42-41, MISSISSIPPI CODE OF 1972, TO RECOGNIZE THE AUTHORITY AND AUTONOMY OF EDUCATIONAL INSTITUTIONS; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 73-42-3, Mississippi Code of 1972, is amended as follows:
73-42-3. In this chapter:
(a) "Agency contract"
means an agreement in which a student-athlete authorizes a person to negotiate or
solicit on behalf of the student-athlete a professional-sports-services contract,
an endorsement contract * * * or compensation for the use of the student-athlete's
name, image or likeness * * *, or enrollment at any educational institution that offers an athletic scholarship
to the student‑athlete.
(b) "Athlete agent" means:
(i) An individual,
whether or not registered under this chapter, who * * *:
1. Directly or indirectly recruits or solicits a student-athlete to enter into an agency contract or, for compensation, procures employment or offers, promises, attempts or negotiates to obtain employment for a student-athlete as a professional athlete or member of a professional sports team or organization;
2. For compensation or in anticipation of compensation related to a student-athlete's participation in athletics:
a. Serves the student-athlete in an advisory capacity on a matter related to finances, business pursuits, or career management decisions, unless the individual is an employee of an educational institution acting exclusively as an employee of the institution for the benefit of the institution; or
b. Manages the business affairs of the student-athlete by providing assistance with bills, payments, contracts or taxes; or
3. In anticipation of representing a student-athlete for a purpose related to the student-athlete's participation in athletics:
a. Gives consideration to the student-athlete or another person;
b. Serves the student-athlete in an advisory capacity on a matter related to finances, business pursuits or career management decisions; or
4. Manages the business affairs of the student-athlete by providing assistance with bills, payments, contracts or taxes; but
(ii) Does not include an individual who:
1. Acts solely on behalf of a professional sports team or organization; or
2. Is a licensed, registered, or certified professional and offers or provides services to a student-athlete customarily provided by members of the profession, unless the individual:
a. Also recruits or solicits the student-athlete to enter into an agency contract;
b. Also, for compensation, procures employment or offers, promises, attempts or negotiates to obtain employment for the student-athlete as a professional athlete or member of a professional sports team or organization; or
c. Receives consideration for providing the services calculated using a different method than for an individual who is not a student-athlete.
(c) "Athletic director" means an individual responsible for administering the overall athletic program of an educational institution or, if an educational institution has separately administered athletic programs for male students and female students, the athletic program for males or the athletic program for females, as appropriate.
(d) "Contact" means a communication, direct or indirect, written or oral, between an athlete agent and a student-athlete, to recruit, induce or solicit the student-athlete to enter into an agency contract.
(e) "Educational institution" includes a public or private elementary school, secondary school, technical or vocational school, community college, college and university.
( * * *f) "Endorsement contract" means:
(i) An agreement under
which a student-athlete is employed or receives consideration * * *
to use on behalf of the other party any value that the student-athlete may have
because of publicity, reputation, following, or fame obtained because of the
student-athlete's athletic ability or performance; and
(ii) An agreement under which a student-athlete receives compensation, consideration or anything of value for the use of the student-athlete's name, image or likeness consistent with the Mississippi Intercollegiate Athletics Compensation Rights Act.
(g) "Enrolled" means registered for courses and attending athletic practice or class. "Enrolls" has a corresponding meaning.
( * * *h) "Intercollegiate sport" means
a sport played at the collegiate level for which eligibility requirements for participation
by a student-athlete are established by a national association * * * that promotes
or regulates collegiate athletics.
(i) "Interscholastic sport" means a sport played between educational institutions that are not community colleges, colleges or universities.
(j) "Licensed, registered or certified professional" means an individual licensed, registered or certified as an attorney, dealer in securities, financial planner, insurance agent, real estate broker or sales agent, tax consultant, accountant or member of a profession, other than that of athlete agent, who is licensed, registered or certified by the state or a nationally recognized organization that licenses, registers or certifies members of the profession on the basis of experience, education, or testing.
(k) "Name, image and likeness agency contract" means an agency contract between a student-athlete and an athlete agent, entered for the sole purpose of the athlete agent negotiating or soliciting on behalf of the student-athlete compensation for the use of the student-athlete's name, image and likeness consistent with the Mississippi Intercollegiate Athletics Compensation Rights Act. A name, image, and likeness contract as defined herein is not subject to the legend requirements of Section 73-42-19(3).
( * * *l) "Person" means an individual, * * * estate, business or nonprofit entity, public corporation, government
or governmental subdivision, agency or instrumentality, or other legal entity.
( * * *m) "Professional-sports-services contract"
means an agreement under which an individual is employed as a professional athlete
or agrees to render services as a player on a professional sports team, with a professional
sports organization, or as a professional athlete.
( * * *n) "Record" means information
that is inscribed on a tangible medium or that is stored in an electronic or other
medium and is retrievable in perceivable form.
(o) "Recruit or solicit" means attempt to influence the choice of an athlete agent by a student-athlete or, if the student-athlete is a minor, a parent or guardian of the student-athlete. The term does not include giving advice on the selection of a particular agent in a family, coaching, or social situation unless the individual giving the advice does so because of the receipt or anticipated receipt of an economic benefit, directly or indirectly, from the agent.
( * * *p) "Registration" means registration
as an athlete agent pursuant to this chapter.
(q) "Sign" means, with present intent to authenticate or adopt a record:
(i) To execute or adopt a tangible symbol; or
(ii) To attach to or logically associate with the record an electronic symbol, sound, or process.
( * * *r) "State" means a state of the
United States, the District of Columbia, Puerto Rico, the United States Virgin Islands,
or any territory or insular possession subject to the jurisdiction of the United
States.
( * * *s) "Student-athlete" means an
individual who is eligible to attend an educational institution and engages
in, is eligible to engage in, or may be eligible in the future to engage in, * * * any
interscholastic or intercollegiate sport * * *. The term
does not include an individual permanently ineligible to participate in a particular
interscholastic or intercollegiate sport for the sport.
SECTION 2. Section 73-42-7, Mississippi Code of 1972, is amended as follows:
73-42-7. (1) Except
as otherwise provided in subsection (2), an individual may not act as an
athlete agent in this state before being issued a certificate of registration under * * *
this chapter.
(2) Before being issued a
certificate of registration, an individual may act as an athlete agent for all
purposes except signing an agency contract if * * *:
(a) The student-athlete initiates communication with the individual; and
(b) Not later than
seven (7) days after an initial act * * * that requires the individual to register
as an athlete agent, the individual submits an application * * * for registration as an athlete
agent in this state.
(3) An agency contract
resulting from conduct in violation of this section is void * * *, and the athlete agent shall return
any consideration received under the contract * * *.
SECTION 3. Section 73-42-9, Mississippi Code of 1972, is amended as follows:
73-42-9. (1) An applicant
for registration as an athlete agent shall submit an application for
registration to the Secretary of State * * * on a form prescribed by the
Secretary of State. * * *
The applicant must be an individual, and the application must be signed by the
applicant under penalty of perjury. The application must contain at least
the following:
(a) The name of the applicant, date and place of birth, and the following contact information for the applicant:
(i) The address of the applicant's principal place of business;
(ii) Work and mobile telephone numbers; and
(iii) Any means of communicating electronically, including a facsimile number, electronic-mail address and personal and business or employer websites;
(b) The name of the applicant's business or employer, if applicable, including for each business or employer, its mailing address, telephone number, organization form and the nature of the business;
(c) * * *
Each social-media account with which the applicant or the applicant's
business or employer is affiliated;
(d) Each business or occupation in which the applicant engaged within five (5) years before the date of the application, including self-employment and employment by others, and any professional or occupational license, registration, or certification held by the applicant during that time;
( * * *e) A description of the applicant's:
(i) Formal training as an athlete agent;
(ii) Practical experience as an athlete agent; and
(iii) Educational background relating to the applicant's activities as an athlete agent;
* * *
(f) The name * * * of each
student-athlete for whom the applicant acted as an athlete agent within five
(5) years before the date of the application or, if the individual is a minor,
the name of the parent or guardian of the minor, together with the student-athlete's
sport and last-known team;
(g) The * * * name and
address of each person who * * *:
(i) * * *
Is a partner, member, officer, manager, associate or profit-sharer or directly
or indirectly holds an equity interest of five percent (5%) or greater of the athlete
agent's business if it is not a corporation; and
(ii) * * * Is an
officer or director of a corporation employing the athlete agent or a
shareholder having an interest of five percent (5%) or greater in the
corporation;
(h) A description of the status of any application by the applicant, or any person named under paragraph (g) of this subsection, for a state or federal business, professional or occupational license, other than as an athlete agent, from a state or federal agency, including any denial, refusal to renew, suspension, withdrawal, or termination of the license and any reprimand or censure related to the license;
( * * *i) Whether the applicant or any other
person named pursuant to paragraph (g) has * * * pleaded guilty or no contest to, has been convicted of,
or has charges pending for, a crime that would involve turpitude or be a felony
if committed in this state, and, if so, identification of:
(i) The crime;
(ii) The law-enforcement agency involved; and
(iii) If applicable, the date of the conviction and the fine or penalty imposed;
(j) Whether, within fifteen (15) years before the date of application, the applicant, or any person named under paragraph (g) of this subsection, has been a defendant or respondent in a civil proceeding, including a proceeding seeking adjudication of legal incompetence and, if so, the date and a full explanation of each proceeding;
(k) Whether the applicant, or any person named under paragraph (g) of this subsection, has an unsatisfied judgment or a judgment of continuing effect, including alimony or a domestic order in the nature of child support, which is not current at the date of the application;
(l) Whether, within ten (10) years before the date of application, the applicant, or any person named under paragraph (g) of this subsection, was adjudicated bankrupt or was an owner of a business that was adjudicated bankrupt;
( * * *m) Whether there has been any
administrative or judicial determination that the applicant or any other person
named pursuant to paragraph (g) has made a false, misleading, deceptive or
fraudulent representation;
( * * *n) * * * Each instance in which the
conduct of the applicant or any other person named pursuant to paragraph (g)
resulted in the imposition of a sanction, suspension or declaration of
ineligibility to participate in an interscholastic * * *, intercollegiate or professional
athletic event on a student-athlete or a sanction on an educational institution;
( * * *o) * * * Each sanction, suspension or
disciplinary action taken against the applicant or any other person named pursuant
to paragraph (g) arising out of occupational or professional conduct;
( * * *p) Whether there has been any denial
of an application for, suspension or revocation of, * * * refusal to renew, or abandonment of the * * * registration * * * of the applicant or any other
person named pursuant to paragraph (g) as an athlete agent in any state;
* * *
( * * *q) * * * Each state
in which the applicant is * * * currently licensed or registered as an athlete agent * * * or has applied to be registered as an athlete agent;
and
* * *
(r) If the applicant is certified or registered by a professional league or players association:
(i) The name of the league or association;
(ii) The date of certification or registration, and the date of expiration of the certification or registration, if any; and
(iii) If applicable, the date of any denial of an application for, suspension or revocation of, refusal to renew, withdrawal of, or termination of, the certification or registration or any reprimand or censure related to the certification or registration; and
(s) Any additional information required by the Secretary of State.
(2) * * * Instead of proceeding under subsection (1) an
individual registered as an athlete agent in another state may apply for registration
as an athlete agent in this state by submitting to the Secretary of State:
(a) * * *
A copy of the application for registration in the other state;
(b) * * *
A statement that identifies any material change in the information on the application
or verifies that there is no material change in the information, signed under penalty
of perjury; and
(c) * * *
A copy of the certificate of registration from the other state.
(3) * * * The Secretary
of State * * * shall issue a
certificate of registration to an individual who applies for registration under
this subsection (3) if the Secretary of State determines:
(a) * * * The application and registration requirements of the
other state are substantially similar to or more restrictive than this chapter;
and
(b) * * * The registration has not been revoked
or suspended and no action involving the individuals conduct as an athlete agent
is pending against the individual or the individual's registration in any state.
* * *
(4) For purposes of implementing subsection (3) of this section, the Secretary of State shall:
(a) Cooperate with national organizations concerned with athlete agent issues and agencies in other states which register athlete agents to develop a common registration form and determine which states have laws that are substantially similar to or more restrictive than this chapter; and
(b) Exchange information, including information related to actions taken against registered athlete agents or their registrations, with those organizations and agencies.
SECTION 4. Section 73-42-11, Mississippi Code of 1972, is amended as follows:
73-42-11. (1) Except as
otherwise provided in subsection ( * * *2), the Secretary of State shall issue
a certificate of registration to an * * * applicant for registration who
complies with Section 73-42-9 * * *.
* * *
( * * *2) The Secretary of State may refuse to
issue a certificate of registration to an applicant for registration under Section
73-42-9 if * * *
the Secretary of State determines that the applicant has engaged in
conduct that * * * adversely reflects on the
applicant's fitness to * * * act as an athlete agent. In making the determination,
the Secretary of State may consider whether the applicant has:
(a) Pleaded guilty or
no contest to, been convicted of or has charges pending for, a crime * * * that * * * would involve moral
turpitude or be a felony * * * if
committed in this state;
(b) Made a materially false, misleading, deceptive or fraudulent representation as an athlete agent or in the application;
(c) Engaged in conduct that would disqualify the applicant from serving in a fiduciary capacity;
(d) Engaged in conduct prohibited by Section 73-42-27;
(e) Had a registration * * * as an athlete
agent suspended, revoked, or denied * * * in any state;
(f) Been refused renewal of registration as an athlete agent in any state;
( * * *g) Engaged in conduct * * * resulting in imposition of a sanction, suspension or
declaration of ineligibility to participate in an interscholastic * * *, intercollegiate or professional
athletic event * * * on a student-athlete or a sanction on an educational
institution; or
( * * *h) Engaged in conduct that * * * adversely reflects on the
applicant's * * * credibility, honesty or integrity.
( * * *3) In making a determination under
subsection ( * * *2),
the Secretary of State shall consider:
(a) How recently the conduct occurred;
(b) The nature of the conduct and the context in which it occurred; and
(c) Any other relevant conduct of the applicant.
( * * *4) An athlete agent * * *
registered under subsection (1) of this section may apply to renew the
registration by submitting an application for renewal in a form prescribed by
the Secretary of State. The applicant shall sign the application for renewal under
penalty of perjury and include current information on all matters required in
an original application for registration.
( * * *5) * * * An athlete
agent registered under Section 73-42-9(4) may renew the registration by
proceeding under subsection (4) of this section or, if the registration in the
other state has been renewed, by submitting to the Secretary of State copies of
the application for renewal in the other state and the renewed registration
from the other state. The Secretary of State shall renew the registration if the
Secretary of State determines:
(a) * * * The registration requirements of the
other state are substantially similar to or more restrictive than this chapter;
and
(b) * * * The renewed registration has not been suspended
or revoked and no action involving the individual's conduct as an athlete agent
is pending against the individual or the individual's registration in any
state.
* * *
( * * *6) Except as provided in Section 33-1-39,
a certificate of registration or a renewal of a registration is valid for two
(2) years.
SECTION 5. Section 73-42-13, Mississippi Code of 1972, is amended as follows:
73-42-13. (1) * * *
The Secretary of State may * * * limit, suspend, revoke or refuse
to renew a registration of an individual registered under Section 73-42-11(1)
for conduct that would have justified * * * refusal to issue a certificate
of registration under Section 73-42-11(3) * * *.
(2) * * *
The Secretary of State may suspend or revoke the
registration of an individual registered under Section 73-42-11(1) or renewed
under Section 73-42-11(4) for any reason for which the Secretary of State could
have refused to grant or renew registration or for conduct that would justify
refusal to issue a certificate of registration under Section 73-42-11(2).
SECTION 6. Section 73-42-17, Mississippi Code of 1972, is amended as follows:
73-42-17. * * * An application for registration or
renewal of registration must be accompanied by a fee in the following amount:
(a) Two Hundred Dollars ($200.00) for an initial application for registration.
(b) Two Hundred Dollars ($200.00) for an application for registration based upon a certificate of registration or licensure issued by another state.
(c) Two Hundred Dollars ($200.00) for an application for renewal of registration.
(d) Two Hundred Dollars ($200.00) for an application for renewal of registration based upon an application for renewal of registration or licensure submitted in another state.
* * *
SECTION 7. Section 73-42-19, Mississippi Code of 1972, is amended as follows:
73-42-19. (1) An agency contract must be in a record, signed by the parties.
(2) An agency contract must * * * contain:
(a) A statement that the athlete agent is registered as an athlete agent in this state and a list of any other states in which the agent is registered as an athlete agent;
( * * *b) The amount and method of calculating
the consideration to be paid by the student-athlete for services to be provided
by the * * *
agent under the contract and any other consideration * * * that the * * * agent has received or will receive from
any other source for entering into the contract or for providing the services;
( * * *c) The name of any person not listed
in the agent's application for registration or renewal of registration
who will be compensated because the student-athlete signed the * * * contract;
( * * *d) A description of any expenses that
the student-athlete agrees to reimburse;
( * * *e) A description of the services to be
provided to the student-athlete;
( * * *f) The duration of the contract; and
( * * *g) The date of execution.
(3) Subject to subsection
(7) of this section, an agency contract must contain * * *
a conspicuous notice in boldface type in * * * substantially the following
form:
WARNING TO STUDENT-ATHLETE
IF YOU SIGN THIS CONTRACT:
(1) YOU MAY LOSE YOUR ELIGIBILITY TO COMPETE AS A STUDENT-ATHLETE IN YOUR SPORT;
(2) * * * IF YOU HAVE AN ATHLETIC DIRECTOR,
WITHIN SEVENTY-TWO (72) HOURS AFTER * * * SIGNING
THIS CONTRACT OR BEFORE THE NEXT SCHEDULED ATHLETIC EVENT IN WHICH YOU PARTICIPATE,
WHICHEVER OCCURS FIRST, BOTH YOU AND YOUR ATHLETE AGENT MUST NOTIFY YOUR ATHLETIC
DIRECTOR THAT YOU HAVE ENTERED INTO THIS CONTRACT AND PROVIDE THE NAME AND CONTACT
INFORMATION OF THE ATHLETE AGENT; AND
(3) YOU MAY CANCEL THIS
CONTRACT WITHIN FOURTEEN (14) DAYS AFTER SIGNING IT.
CANCELLATION OF * * *
THIS CONTRACT MAY NOT REINSTATE YOUR ELIGIBILITY AS A STUDENT-ATHLETE
IN YOUR SPORT.
(4) An agency contract * * * must be accompanied by a separate record
signed by the student-athlete or, if the student-athlete is a minor, the parent
or guardian of the student-athlete acknowledging that signing the contract may
result in the loss of the student-athlete's eligibility to participate in the
student-athlete's sport.
(5) * * * A
student-athlete or, if the student-athlete is a minor, the parent or guardian
of the student-athlete may void an agency contract that does not conform to
this section. If the contract is voided, any consideration received from the
athlete agent under the contract to induce entering into the contract is not
required to be returned.
(6) At the time an agency contract is executed, the athlete agent shall give the student-athlete or, if the student-athlete is a minor, the parent or guardian of the student-athlete a copy in a record of the contract and the separate acknowledgement required by subsection (4) of this section.
(7) If a student-athlete is a minor, an agency contract must be signed by the parent or guardian of the minor and the notice required by subsection (3) of this section must be revised accordingly.
SECTION 8. Section 73-42-21, Mississippi Code of 1972, is amended as follows:
73-42-21. (1) * * *
In
this section, "communicating or attempting to communicate" means
contacting or attempting to contact by an in-person meeting, a record, or any
other method that conveys or attempts to convey a message.
(2) * * * Not later than seventy-two
(72) hours after entering into an agency contract or before the next scheduled
athletic event in which the student-athlete may participate, whichever occurs
first, the athlete agent shall give notice in a record of the existence
of the agency contract to the athletic director of the educational
institution at which the student-athlete is enrolled or at which the * * * agent has reasonable grounds to
believe the student-athlete intends to enroll.
(3) * * * Not later than seventy-two
(72) hours after entering into an agency contract or before * * * scheduled
athletic event in which the student-athlete may participate, whichever occurs
first, the student-athlete shall inform the athletic director of the
educational institution at which the student-athlete is enrolled that * * * the student-athlete has
entered into an agency contract and the name and contact information of the athlete
agent.
(4) If an athlete agent enters into an agency contract with a student-athlete and the student-athlete subsequently enrolls at an educational institution, the agent shall notify the athletic director of the institution of the existence of the contract not later than seventy-two (72) hours after the agent knew or should have known the athlete enrolled.
(5) If an athlete agent has a relationship with a student-athlete before the student-athlete enrolls in an educational institution and receives an athletic scholarship from the institution, the agent shall notify the institution of the relationship not later than ten (10) days after the enrollment if the agent knows or should have known of the enrollment; and
(a) The relationship was motivated in whole or part by the intention of the agent to recruit or solicit the student-athlete to enter into an agency contract in the future; or
(b) The agent directly or indirectly recruited or solicited the student-athlete to enter into an agency contract before the enrollment.
(6) An athlete agent shall give notice in a record to the athletic director of any educational institution or to an athletic director for compliance at any educational institution at which a student-athlete is enrolled before the agent communicates or attempts to communicate with:
(a) The student-athlete or, if the student-athlete is a minor, a parent or guardian of the student-athlete, to influence the student-athlete or parent or guardian to enter into an agency contract; or
(b) Another individual to have that individual influence the student-athlete or, if the student-athlete is a minor, the parent or guardian of the student-athlete to enter into an agency contract.
(7) If a communication or attempt to communicate with an athlete agent is initiated by a student-athlete or another individual on behalf of the student-athlete, the agent shall notify in a record the athletic director of any educational institution at which the student-athlete is enrolled. The notification must be made not later than ten (10) days after the communication or attempt.
(8) An educational institution that becomes aware of a violation of this chapter by an athlete agent shall notify the Secretary of State and any professional league or players association with which the institution is aware the agent is licensed or registered of the violation.
SECTION 9. Section 73-42-23, Mississippi Code of 1972, is amended as follows:
73-42-23. (1) A student-athlete
or, if the student-athlete is a minor, the parent or guardian of the student-athlete
may cancel an agency contract by giving notice in a record to the
athlete agent of the cancellation * * * not later than fourteen (14)
days after the date the contract is signed.
(2) A student-athlete or, if the student-athlete is a minor, the parent or guardian of the student-athlete may not waive the right to cancel any agency contract.
(3) If a student-athlete, parent or guardian cancels an agency contract, the student-athlete, parent or guardian is not required to pay any consideration under the contract or to return any consideration received from the athlete agent to induce the student-athlete to enter into the contract.
SECTION 10. Section 73-42-27, Mississippi Code of 1972, is amended as follows:
73-42-27. (1) An athlete
agent * * * shall
not * * *:
(a) Give * * * a student-athlete, parent or guardian of
the student-athlete materially false or misleading information or make a
materially false promise or representation with the intent to influence the student-athlete,
parent or guardian to enter into an agency contract;
(b) Furnish anything
of value to a student-athlete * * * or another individual, if to do so may result in the loss
of the student-athlete's eligibility to participate in the student-athlete's sport,
unless:
(i) The agent notifies the athletic director of the educational institution at which the student-athlete is enrolled or at which the agent has reasonable grounds to believe the student-athlete intends to enroll not later than seventy-two (72) hours after giving the thing of value; and
(ii) The student-athlete or, if the student-athlete is a minor, a parent or guardian of the student-athlete acknowledges to the agent in a record that receipt of the thing of value may result in the loss of the student-athlete's eligibility to participate in the student-athlete's sport;
(c) * * *
Initiate contact, directly or indirectly, with a student-athlete or, if
the student-athlete is a minor, a parent or guardian of the student-athlete,
to recruit or solicit the student-athlete, parent, or guardian to enter an
agency contract unless registered under this chapter;
( * * *d) * * * Fail to create, retain
or permit inspection of the records required by Section 73-42-25 * * *;
( * * *e) * * *
Fail to register when required by this chapter;
( * * *f) Provide materially false or misleading
information in an application for registration or renewal of registration;
( * * *g) Predate or postdate an agency
contract; or
( * * *h) Fail to notify a student-athlete * * * or
if the student-athlete is a minor, a parent or guardian of the student-athlete,
before the student-athlete, parent or guardian signs an agency contract for
a particular sport that the signing * * * may make the
student-athlete ineligible to participate as a student-athlete in that sport * * *;
(i) Encourage another individual to do any of the acts described in paragraphs (a) through (h) of this subsection (1) on behalf of the agent; or
(j) Encourage another individual to assist any other individual in doing any of the acts described in this subsection (1) on behalf of the agent.
(2) In this subsection, "certified athlete agent" means an athlete agent registered under this chapter 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.
(a) A certified athlete agent may pay expenses of a student-athlete and the student-athlete's family members incurred before the signing of an agency contract if:
(i) The expenses are for the benefit of a student-athlete who is a member of a class of student-athletes authorized to receive the benefit by the national association that certified the agent;
(ii) The expenses are of a type authorized to be paid by a certified agent by the national association that certified the agent; and
(iii) The expenses are for a purpose authorized by the national association that certified the agent.
(b) All certified athlete agents who pay any expenses authorized by this subsection (2) must file an itemized report of the same with the athletic director or the athletic director's designee with the educational institution the student-athlete attends or intends to enroll. The report must be submitted by the fifth day of the month following the month that the expenses were incurred. The reporting of expenses shall be in a format required by the educational institution.
SECTION 11. Section 73-42-31, Mississippi Code of 1972, is amended as follows:
73-42-31. (1) An
educational institution * * * has a right of action against an athlete agent or a former student‑athlete
for damages caused by a violation of this act. In an action under this
section, the court may award to the prevailing party costs and reasonable
attorney's fees. or student-athlete may bring an action for
damages against an athlete agent if the institution or student-athlete is
adversely affected by an act or omission of the agent in violation of this chapter.
An educational institution or student-athlete is adversely affected by an act
or omission of the agent only if, because of the act or omission, the
institution or an individual who was a student-athlete at the time of the act
or omission and enrolled in the institution:
(a) Is suspended or disqualified from participation in an interscholastic or intercollegiate sports event by or under the rules of a state or national federation or association that promotes or regulates interscholastic or intercollegiate sports; or
(b) Suffers financial damage.
(2) * * *
A plaintiff that prevails in an action under this section may recover
treble damages, punitive damages, and costs, and reasonable attorney's fees.
An athlete agent found liable under this section forfeits any right of payment
for anything of benefit or value provided to the student-athlete and shall
refund any consideration paid to the agent by or on behalf of the student-athlete.
(3) * * * A violation of this chapter is an unlawful
trade practice under Section 75-24-5 and, in addition to any penalties under this
chapter, is subject to any remedies available for a violation under that statute.
* * *
SECTION 12. Section 73-42-33, Mississippi Code of 1972, is amended as follows:
73-42-33. The Secretary of
State may assess a civil penalty against an athlete agent not to exceed * * *
Fifty Thousand Dollars ($50,000.00) for a violation of this chapter.
SECTION 13. Section 73-42-34, Mississippi Code of 1972, is amended as follows:
73-42-34. (1) If the Secretary of State determines that a person has engaged in or is engaging in an act, practice, or course of business constituting a violation of this chapter or a rule adopted or order issued under this chapter, or that a person has materially aided or is materially aiding in an act, practice, or course of business constituting a violation of this chapter or a rule adopted or order issued under this chapter, then the secretary may:
(a) Issue an order directing the person to cease and desist from engaging in the act, practice, or course of business, or to take other action necessary or appropriate to comply with this chapter or any rule adopted or order issued under this chapter;
(b) Issue an order imposing an administrative penalty against an athlete agent who violated any provision of this chapter or any rule adopted or order issued under this chapter; and
(c) Take any other action authorized under the provisions of this chapter.
(2) An order issued under
subsection (1) of this section is effective on the date of its issuance. Upon
the order's issuance, the Secretary of State shall promptly serve each person
subject to the order with a copy of the order and a notice that the order has
been entered. The order must include a statement of any civil penalty or other
administrative remedy to be imposed under subsection (1) of this section, a
statement of the costs of investigation that the secretary will seek to
recover, a statement of the reasons for the order, and a statement notifying
the person of * * * the person's right to a hearing * * *. If a
person subject to the order does not request a hearing in writing within thirty
(30) days of the date of the order and none is ordered by the hearing officer,
then the order, including the imposition of a civil penalty or requirement for
payment of the costs of investigation, shall become final as to that person by
operation of law.
(3) In a final order, the secretary may charge the actual cost of an investigation or proceeding for a violation of this chapter or a rule adopted or order issued under this chapter.
(4) If a petition for
judicial review of a final order is not filed in accordance with this section * * *, or the petition is
denied by the court, the secretary may file a certified copy of the final order
with the clerk of a court in the jurisdiction where enforcement will be
sought. The order so filed has the same effect as a judgment of the court and
may be recorded, enforced, or satisfied in the same manner as a judgment of the
court.
(5) If a person does not comply with an order issued under this section, the secretary may petition a court of competent jurisdiction to enforce the order and collect administrative civil penalties and costs imposed under the final order. The court may not require the secretary to post a bond in an action or proceeding under this section. If the court finds, after service and opportunity for hearing, that the person did not comply with the order, the court may adjudge the person in civil contempt of the order. The court may grant any relief the court determines is just and proper in the circumstances.
(6) Any person aggrieved by
a final order of the secretary may obtain a review of the order in the circuit
court of the county of residence of the athlete agent, * * * if the athlete
agent is a Mississippi resident, or the circuit court of the county in which
the educational institution that the student-athlete attends or attended is located,
by filing within thirty (30) days after the entry of the order, a written
petition praying that the order be modified or set aside, in whole or in part.
A copy of the petition shall be served upon the secretary, and the secretary
shall certify and file with the court a copy of the record and evidence upon which
the order was entered. When these have been filed, the court has exclusive
jurisdiction to affirm, modify, enforce or set aside the order, in whole or in
part. The findings of the secretary as to the facts, if supported by competent
material and substantial evidence, are conclusive. The beginning of proceedings
under this subsection does not operate as a stay of the secretary's order, unless
specifically ordered by the court.
(7) In addition to the reasons specified in this section, the Secretary of State shall be authorized to suspend the registration of any person for being out of compliance with an order for support, as defined in Section 93-11-153. The procedure for suspension of a registration for being out of compliance with an order for support, and the procedure for the reissuance or reinstatement of a registration suspended for that purpose, and the payment of any fees for the reissuance or reinstatement of a registration suspended for that purpose, shall be governed by Section 93-11-157 or 93-11-163, as the case may be. Actions taken by the Secretary of State in suspending the registration of a person when required by Section 93-11-157 are not actions from which an appeal may be taken under this section. Any appeal of a registration suspension that is required by Section 93-11-157 or 93-11-163 shall be taken in accordance with the appeal procedure specified in Section 93-11-157 or 93-11-163, as the case may be, rather than the procedure specified in this section. If there is any conflict between any provision of Section 93-11-157 or 93-11-163 and any provision of this chapter, the provisions of Section 93-11-157 or 93-11-163, as the case may be, shall control.
SECTION 14. The following shall be codified as Section 73-42-41, Mississippi Code of 1972:
73-42-41. Nothing contained in this chapter shall be interpreted or construed to limit, in any way, the right of Mississippi educational institutions to adopt and enforce their own policies, rules, or regulations addressing athlete agent solicitations or interactions with the student-athletes attending their institutions.
SECTION 15. This act shall take effect and be in force from and after July 1, 2022.