In this subtitle the following words have the meanings indicated. “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 or an endorsement contract. “Agency contract” includes a written agreement for current or future representation in which a student–athlete authorizes a person to assess and plan for the financial benefits that may arise out of the student–athlete’s professional sports career. “Athlete agent” means an individual who enters into an agency contract with a student–athlete or, directly or indirectly, recruits or solicits a student–athlete to enter into an agency contract. “Athlete agent” includes an individual who: represents to the public that the individual is an athlete agent; or facilitates or encourages a connection between a student–athlete and another athlete agent. “Athlete agent” does not include a spouse, parent, sibling, grandparent, or guardian of the student–athlete, or an individual acting solely on behalf of a professional sports team or professional sports organization. “Athletic director” means an individual responsible for administering: the overall athletic program of an educational institution; or the athletic program for males or the athletic program for females if an educational institution has separately administered athletic programs for male students and female students, as appropriate. “Contact” means a communication, direct or indirect, between an athlete agent and a student-athlete to recruit or solicit the student-athlete to enter into an agency contract. “Endorsement contract” means an agreement under which a student-athlete is employed or receives consideration to use on behalf of another party for any value that the student-athlete may have due to publicity, reputation, following, or fame obtained due to athletic ability or performance. “Intercollegiate sport” means a sport played at the collegiate level for which eligibility requirements of a student-athlete are established by a national association for the promotion or regulation of collegiate athletics. “License” means a license issued by the Secretary to act as an athlete agent. “Person” means an individual, corporation, business trust, statutory trust, estate, trust, partnership, limited liability company, association, joint venture, governmental agency or instrumentality, public corporation, or any other legal or commercial entity. “Professional-sports-services contract” means an agreement under which an individual is employed or agrees to render services as a player on a professional sports team with a professional sports organization or as a professional athlete. “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. “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. “Student-athlete” means an individual who engages in, is eligible to engage in, or may be eligible in the future to engage in, any intercollegiate sport. “Student-athlete” includes an individual who is or was a member of a sports team of a high school. “Student-athlete” does not include an individual permanently ineligible to participate in a particular sport.

By acting as an athlete agent in the State, a nonresident individual appoints the Secretary as the individual’s agent for service of process in any civil action in the State related to the individual’s acting as an athlete agent in the State. The Secretary may issue subpoenas for any material that is relevant to the administration of this subtitle.

Except as otherwise provided in subsection (b) of this section or §§ 10–14A–03 and 10–14B–03 of the State Government Article, an individual may not act as an athlete agent in the State without holding a license under § 4–405 of this subtitle. Before being issued a license, an individual may act as an athlete agent in the State for all purposes except signing an agency contract if: a student-athlete or another person acting on behalf of the student-athlete initiates communication with the individual; and within 7 days after an initial act as an athlete agent, the individual submits an application for a license as an athlete agent in the State. 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.

An applicant for a license shall: submit to the Secretary an application on the form the Secretary requires; and pay to the Secretary a $25 application fee. In addition to any other information required on the application, the application must be in the name of an individual and, except as otherwise provided in subsection (d) of this section, signed or otherwise authenticated by the applicant under penalty of perjury and state or contain: the name of the applicant and the address of the applicant’s principal place of business; the name of the applicant’s business or employer, if applicable; any business or occupation engaged in by the applicant for 5 years before the date of the application; a description of the applicant’s: formal training as an athlete agent; practical experience as an athlete agent; and educational background relating to the applicant’s activities as an athlete agent; the names and addresses of three individuals not related to the applicant who are willing to serve as references; the name, sport, and last known team for each individual for whom the applicant acted as an athlete agent during the 5 years before the date of the application; the names and addresses of all persons who are: with respect to the athlete agent’s business if it is not a corporation, the partners, members, officers, managers, associates, or profit sharers of the business; and with respect to a corporation employing the athlete agent, the officer’s directors, and any shareholder of the corporation having an interest of 5% or greater; whether the applicant or any person named in accordance with item (7) of this subsection has been convicted of a crime that, if committed in the State, would be a crime involving moral turpitude or a felony, and identify the crime; whether there has been any administrative or judicial determination that the applicant or any person named in accordance with item (7) of this subsection has made a false, misleading, deceptive, or fraudulent representation; any instance in which the conduct of the applicant or any person named in accordance with item (7) of this subsection resulted in the imposition of a sanction, suspension, or declaration of ineligibility to participate in an interscholastic or intercollegiate athletic event on a student-athlete or educational institution; any sanction, suspension, or disciplinary action taken against the applicant or any person named in accordance with item (7) of this subsection arising out of occupational or professional misconduct; and whether there has been any denial of an application for, suspension or revocation of, or refusal to renew the registration or licensure of the applicant or any person named in accordance with item (7) of this subsection as an athlete agent in any state. Notwithstanding subsection (b)(7) of this section, an applicant who is a member of the Bar of the Court of Appeals of Maryland need not provide the name and address of a person who is a partner, member, associate, or profit sharer in a law firm or professional corporation. An individual who has submitted an application for, and holds a certificate of registration or licensure as an athlete agent in another state, may submit a copy of the application and certificate in lieu of submitting an application in the form required under subsection (b) of this section. The Secretary shall accept the application and the certificate from the other state as an application for a license in the State if the application to the other state: was submitted in the other state 6 months before the submission of the application in the State and the applicant certifies that the information contained in the application is current; contains information substantially similar to or more comprehensive than that required in an application submitted in the State; and was signed by the applicant under penalty of perjury.

Except as otherwise provided in subsection (b) of this section, the Secretary shall issue a license to an individual who: complies with § 4-404(a) of this subtitle or whose application has been accepted under § 4-404(d) of this subtitle; and pays to the Secretary a $1,000 license fee. Subject to the hearing provisions of § 4-407 of this subtitle, the Secretary may deny a license if the Secretary determines that the applicant has engaged in conduct that has a significant adverse effect on the applicant’s fitness to act as an athlete agent. In making the determination under paragraph (1) of this subsection, the Secretary may consider whether the applicant has: been convicted of a crime that, if committed in the State, would be a crime involving moral turpitude or a felony; made a materially false, misleading, deceptive, or fraudulent representation in the application or as an athlete agent; engaged in conduct that would disqualify the applicant from serving in a fiduciary capacity; engaged in conduct prohibited by § 4-413 of this subtitle; had a registration or licensure as an athlete agent suspended, revoked, or denied or been refused renewal of registration or licensure as an athlete agent in any state; engaged in conduct the consequence of which was that a sanction, suspension, or declaration of ineligibility to participate in an interscholastic or intercollegiate athletic event was imposed on a student-athlete or educational institution; engaged in conduct that significantly adversely reflects on the applicant’s credibility, honesty, or integrity; or failed to demonstrate financial stability. In making a determination under subsection (b) of this section, the Secretary shall consider: how recently the conduct occurred; the nature of the conduct and the context in which it occurred; and any other relevant conduct of the applicant. An athlete agent may apply to renew a license by: submitting an application for renewal in a form required by the Secretary; and paying to the Secretary a $1,000 renewal fee. The application for renewal must be signed by the applicant under penalty of perjury and must contain current information on all matters required in an original application for a license. An individual who has submitted an application for renewal of registration or licensure in another state, in lieu of submitting an application for renewal in the form required under subsection (d) of this section, may file a copy of the application for renewal and a valid certificate of registration or licensure from the other state. The Secretary shall accept the application for renewal from the other state as an application for renewal in the State if the application for the other state: was submitted in the other state within 6 months before the filing in the State and the applicant certifies the information contained in the application for renewal is current; contains information substantially similar to or more comprehensive than that required in an application for renewal submitted in the State; and was signed by the applicant under penalty of perjury. A license or a renewal is valid for 2 years.

Subject to the hearing provisions of § 4-407 of this subtitle, the Secretary may reprimand a licensee, suspend, or revoke a license for conduct that would have justified denial of a license under § 4-405(b) of this subtitle. Instead of or in addition to reprimanding the licensee or suspending or revoking a license under subsection (a) of this section, the Secretary may assess a civil penalty under § 4-416 of this subtitle. The Secretary shall pay any penalty collected under this subsection into the General Fund of the State.

Except as provided in § 10-226 of the State Government Article, before the Secretary takes any final action under § 4-405(b), § 4-406, or § 4-416 of this subtitle, the Secretary shall give the person against whom the action is contemplated an opportunity for a hearing before the Secretary. The Secretary shall give notice and hold the hearing in accordance with Title 10, Subtitle 2 of the State Government Article. The Secretary may administer oaths in a proceeding under this section. If, after due notice, the person against whom the action is contemplated does not appear, the Secretary may hear and determine the matter.

The Secretary shall pay all moneys collected under this subtitle into the General Fund of the State.

An agency contract must be in a record signed or otherwise authenticated by the parties. An agency contract must state or contain: the amount and method of calculating the consideration to be paid by the student–athlete for services to be provided by the athlete agent under the contract and any other consideration the athlete agent has received or will receive from any other source for entering into the contract or for providing the services; the name of any person not listed in the application for a license or renewal of a license who will be compensated because the student–athlete signed the agency contract; a description of any expenses that the student–athlete agrees to reimburse; a description of the services to be provided to the student–athlete; the duration of the contract; and the date of execution. An agency contract must contain, in close proximity to the signature of the student–athlete, a conspicuous notice in boldface type in capital letters stating: “WARNING TO STUDENT–ATHLETE IF YOU SIGN THIS CONTRACT: YOU MAY LOSE YOUR ELIGIBILITY TO COMPETE AS A STUDENT–ATHLETE IN YOUR SPORT; IF YOU HAVE AN ATHLETIC DIRECTOR, WITHIN 72 HOURS AFTER ENTERING INTO THIS CONTRACT, BOTH YOU AND YOUR ATHLETE AGENT MUST NOTIFY YOUR ATHLETIC DIRECTOR; AND YOU MAY CANCEL THIS CONTRACT WITHIN 14 DAYS AFTER SIGNING IT. CANCELLATION OF THIS CONTRACT MAY NOT REINSTATE YOUR ELIGIBILITY.” An agency contract that does not conform to this section is voidable by the student–athlete. If a student–athlete voids an agency contract under this section, the student–athlete 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. The athlete agent shall give a record of the signed or otherwise authenticated agency contract to the student–athlete at the time of execution.

Within 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 contract to the athletic director of the educational institution at which the student-athlete is enrolled or the athlete agent has reasonable grounds to believe the student-athlete intends to enroll. Within 72 hours after entering into an agency contract or before the next 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 or in which the student-athlete intends to enroll that the student-athlete has entered into an agency contract.

A student-athlete may cancel an agency contract by giving notice of the cancellation to the athlete agent in a record within 14 days after the contract is signed. A student-athlete may not waive the right to cancel an agency contract. If a student-athlete cancels an agency contract, the student-athlete 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.

An athlete agent shall retain the following records for a period of 5 years: the name of each individual represented by the athlete agent; the address of each individual represented by the athlete agent; any agency contract entered into by the athlete agent; and any direct costs incurred by the athlete agent in the recruitment or solicitation of a student-athlete to enter into an agency contract. Records required to be retained by subsection (a) of this section are open to inspection by the Secretary during normal business hours.

An athlete agent, with the intent to induce a student–athlete to enter into an agency contract, may not: give any materially false or misleading information or make a materially false promise or representation; furnish anything of value to a student–athlete before the student–athlete enters into the agency contract; furnish anything of value to any individual other than the student–athlete or another licensed athlete agent; or solicit another individual who is not an athlete agent to commit an act on behalf of the athlete agent that is a violation of this subtitle. An athlete agent may not intentionally: initiate contact with a student–athlete unless licensed under this subtitle; refuse or fail to retain or permit inspection of the records required to be retained by § 4–412 of this subtitle; fail to obtain a license when required by § 4–403 of this subtitle; provide materially false or misleading information in an application for a license or renewal of a license; predate or postdate an agency contract; or fail to notify a student–athlete before the student–athlete signs or otherwise authenticates an agency contract for a particular sport that the signing or authentication may make the student–athlete ineligible to participate as a student–athlete in that sport. An athlete agent may not split a fee with or receive compensation from: a professional sports league; a professional sports franchise; a representative or employee of a professional sports league or franchise; or an employee of an educational institution in the State.

An athlete agent who violates § 4-413 of this subtitle is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $10,000 or imprisonment not exceeding 1 year or both.

An educational institution has a right of action against an athlete agent or a former student-athlete for damages caused by violation of this subtitle. In an action under this section, the court may award to the prevailing party costs and reasonable attorney’s fees. Damages to an educational institution under subsection (a) of this section include losses and expenses incurred because, as a result of the conduct of an athlete agent or former student-athlete, the educational institution was injured by a violation of this subtitle or was penalized, disqualified, or suspended from participation in athletics by a national association for the promotion and regulation of athletics, by an athletic conference, or by reasonable self-imposed disciplinary action taken to mitigate sanctions likely to be imposed by such an organization. A right of action under this section does not accrue until the educational institution discovers, or by the exercise of reasonable diligence would have discovered, the violation by the athlete agent or former student-athlete. Any liability of the athlete agent or the former student-athlete under this section is several and not joint. This subtitle does not restrict rights, remedies, or defenses of any person under law or equity.

Except as otherwise provided in this subtitle and subject to the provisions of § 4-407 of this subtitle, the Secretary may assess a civil penalty against a person who violates any provision of this subtitle not to exceed $25,000. To determine the amount of the penalty, the Secretary shall consider: the seriousness of the violation; the harm caused by the violation; the good faith of the violator; any history of previous violations by the violator; and any other relevant factors. The Secretary shall pay any penalty collected under this section into the General Fund of the State.

In applying and construing this subtitle, consideration must be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it.

The provisions of this subtitle governing the legal effect, validity, or enforceability of electronic records or signatures, and of contracts formed or performed with the use of such records or signatures conform to the requirements of Section 102 of the Electronic Signatures in Global and National Commerce Act, Pub. L. No. 106-229, 114 Stat. 464 (2000), and supersede, modify, and limit the Electronic Signatures in Global and National Commerce Act.

If any provision of this subtitle or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this subtitle which can be given effect without the invalid provision or application, and to this end the provisions of this subtitle are severable.

The Secretary shall adopt regulations to carry out this subtitle.

This subtitle is the Maryland Uniform Athlete Agents Act.