101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB3941

 

Introduced 10/29/2019, by Rep. Emanuel Chris Welch

 

SYNOPSIS AS INTRODUCED:
 
New Act

    Creates the Illinois Athlete Agents Act of 2021. Requires licensure of agents for student-athletes with the Department of Financial and Professional Regulation and establishes qualifications for licensure and requirements for athlete agents. Sets forth provisions concerning the powers and duties of the Department, grounds for disciplinary action, requirements for agency contracts subject to the Act, a student-athlete's right to cancel the contract, notice to educational institutions, injunctive actions, investigations, and hearings. Establishes recordkeeping requirements for athlete agents. Prohibits athlete agents from engaging in specified conduct, subject to criminal and civil penalties. Includes other provisions. Preempts home rule powers. Effective January 1, 2021.


LRB101 15032 RPS 64082 b

CORRECTIONAL BUDGET AND IMPACT NOTE ACT MAY APPLY
FISCAL NOTE ACT MAY APPLY
HOME RULE NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3941LRB101 15032 RPS 64082 b

1    AN ACT concerning athlete agents.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the
5Illinois Athlete Agents Act of 2021.
 
6    Section 10. Declaration of public policy. Practice as an
7athlete agent in the State of Illinois is hereby declared to
8affect the public health, safety, and well-being of its
9citizens and to be subject to regulation and control in the
10public interest. It is further declared that the practice as an
11athlete agent, as defined in this Act, merits the confidence of
12the public, and that only qualified persons shall be authorized
13to engage in such practice in the State of Illinois. This Act
14shall be liberally construed to best carry out this purpose.
 
15    Section 15. Definitions. In this Act:
16    "Address of record" means the designated address recorded
17by the Department in the applicant's or licensee's application
18file or license file maintained by the Department's licensure
19maintenance unit. It is the duty of the applicant or licensee
20to inform the Department of any change of address, and such
21changes must be made either through the Department's website or
22by contacting the Department's licensure maintenance unit.

 

 

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1    "Agency contract" means an agreement in which a
2student-athlete authorizes a person to negotiate or solicit on
3behalf of the student-athlete a professional-sports-services
4contract or an endorsement contract.
5    "Athlete agent" means an individual who enters into an
6agency contract with a student-athlete or, directly or
7indirectly, recruits or solicits a student-athlete to enter
8into an agency contract. "Athlete agent" includes an individual
9who represents to the public that the individual is an athlete
10agent. "Athlete agent" does not include a spouse, parent,
11sibling, grandparent, or guardian of the student-athlete or an
12individual acting solely on behalf of a professional sports
13team or professional sports organization.
14    "Athletic director" means an individual responsible for
15administering the overall athletic program of an educational
16institution or, if an educational institution has separately
17administered athletic programs for male students and female
18students, the athletic program for males or the athletic
19program for females, as appropriate.
20    "Contact" means a communication, direct or indirect,
21between an athlete agent and a student-athlete, to recruit or
22solicit the student-athlete to enter into an agency contract.
23    "Department" means the Department of Financial and
24Professional Regulation.
25    "Endorsement contract" means an agreement under which a
26student-athlete is employed or receives consideration to use on

 

 

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1behalf of the other party any value that the student-athlete
2may have because of publicity, reputation, following, or fame
3obtained because of athletic ability or performance.
4    "Intercollegiate sport" means a sport played at the
5collegiate level for which eligibility requirements for
6participation by a student-athlete are established by a
7national association for the promotion or regulation of
8collegiate athletics.
9    "License" means a person holding licensure as an athlete
10agent pursuant to this Act.
11    "Licensed athlete agent" means an individual who is
12licensed under this Act to engage as an athlete agent in
13Illinois.
14    "Person" means an individual, corporation, business trust,
15estate, trust, partnership, limited liability company,
16association, joint venture, government; governmental
17subdivision, agency, or instrumentality; public corporation;
18or any other legal or commercial entity.
19    "Professional-sports-services contract" means an agreement
20under which an individual is employed, or agrees to render
21services, as a player on a professional sports team, with a
22professional sports organization, or as a professional
23athlete.
24    "Record" means information that is inscribed on a tangible
25medium or that is stored in an electronic or other medium and
26is retrievable in perceivable form.

 

 

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1    "Secretary" means the Secretary of Financial and
2Professional Regulation.
3    "State" means a state of the United States, the District of
4Columbia, Puerto Rico, the United States Virgin Islands, or any
5territory or insular possession subject to the jurisdiction of
6the United States.
7    "Student-athlete" means an individual who engages in, is
8eligible to engage in, or may be eligible in the future to
9engage in, any intercollegiate sport. If an individual is
10permanently ineligible to participate in a particular
11intercollegiate sport, the individual is not a student-athlete
12for purposes of that sport.
 
13    Section 20. Exemptions. Nothing in this Act shall be
14construed to prohibit practice as an athlete agent for the
15following:
16        (1) Practice as an athlete agent by officers and
17    employees of the United States government within the scope
18    of their employment.
19        (2) Practice as an athlete agent by any person licensed
20    in this State under any other Act from engaging in the
21    practice for which he is licensed.
 
22    Section 25. Restrictions and limitations.
23    (a) No person without a license under this Act or who is
24otherwise exempt from this Act shall: (i) in any manner hold

 

 

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1himself or herself out to the public as a licensed athlete
2agent; (ii) attach the title "licensed athlete agent" to his or
3her name; or (iii) render or offer to render to any individual,
4athlete or other person or entity any services or activities
5constituting the practice of an athlete agent as defined in
6this Act.
7    (b) A person shall be construed to practice, render, or
8offer to practice as an athlete agent, within the meaning and
9intent of this Act, if that person: (i) by verbal claim, sign,
10advertisement, letterhead, card, or any other means,
11represents himself or herself to be an athlete agent or through
12the use of some title implies that he or she is an athlete
13agent or is licensed under this Act; (ii) holds himself or
14herself out as able to perform or does perform services or work
15defined in this Act as the practice of an athlete agent; or
16(iii) provides services as an athlete agent as set forth in
17this Act.
18    Individuals practicing as an athlete agent in Illinois as
19of the effective date of this Act may continue to practice as
20provided in this Act until the Department has adopted rules
21implementing this Act. To continue practicing as an athlete
22agent after the adoption of rules, individuals shall apply for
23licensure within 90 days after the effective date of the rules.
24If an application is received during the 90-day period, then
25the individual may continue to practice until the Department
26acts to grant or deny licensure. If an application is not filed

 

 

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1within the 90-day period, then the individual must cease
2practice as an athlete agent at the conclusion of the 90-day
3period and until the Department acts to grant a license to the
4individual.
 
5    Section 30. Practice pending licensure; void contracts.
6    (a) Except as otherwise provided in Section 20 or in
7subsection (b) of this Section, an individual may not act as an
8athlete agent in this State without holding a license issued
9under this Act.
10    (b) Before being issued a license, an individual may act as
11an athlete agent in this State for all purposes except signing
12an agency contract if:
13        (1) a student-athlete or another person acting on
14    behalf of the student-athlete initiates communication with
15    the individual; and
16        (2) within 7 days after an initial act as an athlete
17    agent, the individual submits an application and the
18    application and fee have been received by the Department
19    for licensure as an athlete agent in this State.
20    (c) An agency contract resulting from conduct in violation
21of this Section is void and the athlete agent shall return any
22consideration received under the contract.
 
23    Section 35. Powers and duties of the Department. Subject to
24the provisions of this Act, the Department may:

 

 

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1        (1) Conduct or authorize examinations, at the
2    discretion of the Department, to ascertain the fitness and
3    qualifications of applicants for licensure and issue
4    licenses to those who are found to be fit and qualified.
5        (2) Adopt rules for a method of examination of
6    candidates if required.
7        (3) Conduct hearings on proceedings to revoke,
8    suspend, or otherwise discipline or take nondisciplinary
9    action.
10        (4) Adopt rules required for the administration of this
11    Act.
 
12    Section 40. Application for original license. Applications
13for original licenses shall be made to the Department on forms
14prescribed by the Department and accompanied by the required
15fee. All applications shall contain the information that, in
16the judgment of the Department, will enable the Department to
17pass on the qualifications of the applicant for a license to
18practice as an athlete agent.
 
19    Section 45. Qualifications for licensure.
20    (a) A person is qualified for licensure as an athlete agent
21if that person:
22        (1) is at least 21 years of age;
23        (2) has applied in writing on forms prepared and
24    furnished by the Department;

 

 

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1        (3) has not engaged or is not engaged in any practice
2    or conduct that would be grounds for disciplining a
3    licensee under this Act;
4        (4) pays the required nonrefundable fee as set forth in
5    rule;
6        (5) submits an application that is signed or otherwise
7    authenticated by the applicant under penalty of perjury
8    which contains the following information:
9            (A) the name and social security number of the
10        applicant, and the address of the applicant's
11        principal place of business;
12            (B) the name of the applicant's business or
13        employer, if applicable;
14            (C) any business or occupation engaged in by the
15        applicant for the 5 years next preceding the date of
16        submission of the application;
17            (D) a description of the applicant's:
18                (i) education or formal training as an athlete
19            agent;
20                (ii) work history, including, but not limited
21            to, any practical experience as an athlete agent;
22            and
23                (iii) educational background;
24            (E) the names and addresses of all persons who are:
25                (i) with respect to the athlete agent's
26            business if it is not a corporation, the partners,

 

 

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1            members, officers, managers, associates, or
2            profit-sharers of the business; and
3                (ii) with respect to a corporation employing
4            the athlete agent, the officers, directors, and
5            any shareholder of the corporation having an
6            interest of 5% or greater;
7            (F) the names and addresses of 3 individuals not
8        related to the applicant who are willing to serve as
9        references; and
10            (G) the name, sport, and last known team for each
11        individual for whom the applicant acted as an athlete
12        agent during the 5 years next preceding the date of
13        submission of the application; and
14        (7) has complied with all other requirements of this
15    Act and rules established for the implementation of this
16    Act.
17    (b) Applicants have 3 years from the date of application to
18complete the application process. If the process has not been
19completed in 3 years, then the application shall be denied, the
20fee shall be forfeited, and the applicant must reapply and meet
21the requirements in effect at the time of reapplication.
 
22    Section 50. Licensure by endorsement.
23    (a) The Department may, in its discretion, grant a license
24on submission of the required application and payment of the
25required nonrefundable fee to any person who, at the time of

 

 

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1application, is licensed by another state or the United States
2or a foreign country or province whose standards, in the
3opinion of the Department, were substantially equivalent at the
4date of his or her licensure in the other jurisdiction to the
5requirements then in force in this State or to any person who
6at the time of his or her licensure possessed individual
7qualifications that were substantially equivalent to the
8requirements of this Act.
9    (b) The Department may adopt rules to further define the
10licensing criteria under this Section.
11    (c) Applicants have 3 years from the date of application to
12complete the application process. If the process has not been
13completed in 3 years, then the application shall be denied, the
14fee shall be forfeited, and the applicant must reapply and meet
15the requirements in effect at the time of reapplication.
 
16    Section 55. Licenses; renewals; restoration; person in
17military service.
18    (a) The expiration date and renewal period for each license
19issued under this Act shall be set by rule. As a condition for
20renewal of a license, the licensee may be required to complete
21continuing education under requirements set forth in rules of
22the Department.
23    (b) Any person who has permitted his or her license to
24expire may have his or her license restored by making
25application to the Department and filing proof acceptable to

 

 

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1the Department of fitness to have his or her license restored,
2which may include sworn evidence certifying to active practice
3in another jurisdiction satisfactory to the Department,
4complying with any continuing education requirements, and
5paying the required restoration fee.
6    (c) If the person has not maintained an active practice in
7another jurisdiction satisfactory to the Department, then the
8Department shall determine, by an evaluation program
9established by rule, the person's fitness to resume active
10status and may require the person to complete a period of
11evaluated experience. However, any person whose license
12expired while (i) in federal service on active duty with the
13Armed Forces of the United States or called into service or
14training with the State Militia, or (ii) in training or
15education under the supervision of the United States
16preliminary to induction into the military service may have his
17or her license renewed or restored without paying any lapsed
18renewal fees if, within 2 years after honorable termination of
19the service, training or education, except under conditions
20other than honorable, he or she furnishes the Department with
21satisfactory evidence to the effect that he or she has been so
22engaged and that the service, training, or education has been
23so terminated.
24    (d) Any person who notifies the Department, in writing on
25forms prescribed by the Department, may place his or her
26license on inactive status and shall be excused from the

 

 

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1payment of renewal fees until the person notifies the
2Department in writing of the intention to resume active
3practice.
4    (e) Any person requesting his or her license be changed
5from inactive to active status shall be required to pay the
6current renewal fee and shall also demonstrate compliance with
7any applicable continuing education requirements.
8    (f) Any licensee whose license is nonrenewed or on inactive
9status shall not engage in the practice as an athlete agent as
10set forth in this Act in the State of Illinois and use the
11title or advertise that he or she performs the services of an
12athlete agent.
13    (g) Any person violating subsection (f) of this Section
14shall be considered to be practicing without a license and
15shall be subject to the disciplinary provisions of this Act.
16    (h) The Department may adopt additional rules in order to
17effectively administer the provisions in this Section.
 
18    Section 60. Fees.
19    (a) The fees for the administration and enforcement of this
20Act, including, but not limited to, original licensure,
21renewal, and restoration fees, shall be set by the Department
22by rule. The fees shall not be refundable.
23    (b) All fees and other moneys collected under this Act
24shall be deposited into the General Professions Dedicated Fund.
 

 

 

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1    Section 65. Roster. The Department shall maintain a roster
2of names and addresses of all persons who hold valid licenses
3and all persons whose licenses have been suspended, revoked, or
4otherwise disciplined within the previous year. This roster
5shall be available upon request and payment of the required fee
6as set forth by rule.
 
7    Section 70. Returned checks; fines. Any person who delivers
8a check or other payment to the Department that is returned to
9the Department unpaid by the financial institution upon which
10it is drawn shall pay to the Department, in addition to the
11amount already owed to the Department, a fine of $50. The fines
12imposed by this Section are in addition to any other discipline
13provided under this Act for unlicensed practice or practice on
14a nonrenewed license. The Department shall notify the person
15that payment of fees and fines shall be paid to the Department
16by certified check or money order within 30 calendar days of
17the notification. If, after the expiration of 30 days from the
18date of the notification, the person has failed to submit the
19necessary remittance, then the Department shall automatically
20terminate the license or deny the application, without hearing.
21If, after termination or denial, the person seeks a license,
22then he or she shall apply to the Department for restoration or
23issuance of the license and pay all fees and fines due to the
24Department. The Department may establish a fee for the
25processing of an application for restoration of a license to

 

 

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1pay all expenses of processing this application. The Secretary
2may waive the fines due under this Section in individual cases
3where the Secretary finds that the fines would be unreasonable
4or unnecessarily burdensome.
 
5    Section 75. Grounds for disciplinary action.
6    (a) The Department may refuse to issue or renew, or may
7revoke, suspend, place on probation, reprimand, or take other
8disciplinary or nondisciplinary action as the Department may
9deem appropriate, including imposing fines not to exceed
10$10,000 for each violation, with regard to any license for any
11one or combination of the following:
12        (1) Making a material misstatement in furnishing
13    information to the Department.
14        (2) Violating this Act, or the rules adopted pursuant
15    to this Act.
16        (3) Conviction of or entry of a plea of guilty or nolo
17    contendere, finding of guilt, jury verdict, or entry of
18    judgment or by sentencing of any crime, including, but not
19    limited to, convictions, preceding sentences of
20    supervision, conditional discharge, or first offender
21    probation, to any crime that is a felony under the laws of
22    the United States or any state or territory thereof or that
23    is a misdemeanor of which as essential element is
24    dishonesty, or any crime that is directly related to the
25    practice of the profession.

 

 

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1        (4) Making any misrepresentation for the purpose of
2    obtaining licensure or violating any provision of this Act
3    or the rules adopted under this Act pertaining to
4    advertising.
5        (5) Professional incompetence.
6        (6) Gross malpractice.
7        (7) Aiding or assisting another person in violating any
8    provision of this Act or rules adopted under this Act.
9        (8) Failing, within 60 days, to provide information in
10    response to a written request made by the Department.
11        (9) Engaging in dishonorable, unethical, or
12    unprofessional conduct of a character likely to deceive,
13    defraud, or harm the public.
14        (10) Inability to practice with reasonable judgment,
15    skill or safety as a result of habitual or excessive use or
16    addiction to alcohol, narcotics, stimulants, or any other
17    chemical agent or drug.
18        (11) Denial of any application as an athlete agent or
19    discipline by another state, District of Columbia,
20    territory, or foreign nation, if at least one of the
21    grounds for the discipline is the same or substantially
22    equivalent to those set forth in this Section.
23        (12) A finding by the Department that the licensee,
24    after having his or her license placed on probationary
25    status, has violated the terms of probation.
26        (13) Willfully making or filing false records or

 

 

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1    reports in his or her practice, including, but not limited
2    to, false records filed with State agencies or departments.
3        (14) Inability to practice the profession with
4    reasonable judgment, skill, or safety as a result of a
5    physical illness, including, but not limited to,
6    deterioration through the aging process or loss of motor
7    skill, or a mental illness or disability.
8        (15) Solicitation of professional services other than
9    permitted advertising.
10        (16) Conviction of or cash compromise of a charge or
11    violation of the Illinois Controlled Substances Act
12    regulating narcotics.
13        (17) Gross, willful, or continued overcharging for
14    professional services, including filing false statements
15    for collection of fees for which services are not rendered.
16        (18) Practicing under a false or, except as provided by
17    law, an assumed name.
18        (19) Fraud or misrepresentation in applying for, or
19    procuring, a license under this Act or in connection with
20    applying for renewal of a license under this Act.
21        (20) Any instance in which the conduct of the applicant
22    or any person named pursuant to item (5) of subsection (a)
23    of Section 45 resulted in the imposition of a sanction,
24    suspension, or declaration of ineligibility to participate
25    in an interscholastic or intercollegiate athletic event on
26    a student-athlete or educational institution.

 

 

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1        (21) Any instance in which the conduct of any person
2    named pursuant to item (5) of subsection (a) of Section 45
3    resulted in the denial of an application as an athlete
4    agent or discipline of a license as an athlete agent by
5    another state, District of Columbia, territory, or foreign
6    nation, if at least one of the grounds for the discipline
7    is the same or substantially equivalent to those set forth
8    in this Section.
9        (22) Committing any of the activities set forth in
10    subsection (b) of Section 175 of this Act.
11    (b) A person holding a license under this Act or has
12applied for licensure under this Act who, because of a physical
13or mental illness or disability, including, but not limited to,
14deterioration through the aging process or loss of motor skill,
15is unable to practice the profession with reasonable judgment,
16skill, or safety may be required by the Department to submit to
17care, counseling or treatment by physicians approved or
18designated by the Department as a condition, term, or
19restriction for continued, reinstated, or renewed licensure to
20practice. Submission to care, counseling, or treatment as
21required by the Department shall not be considered discipline
22of the license. If the licensee refuses to enter into a care,
23counseling, or treatment agreement or fails to abide by the
24terms of the agreement, then the Department may file a
25complaint to suspend, revoke, or otherwise discipline the
26license of the individual. The Secretary may order the license

 

 

HB3941- 18 -LRB101 15032 RPS 64082 b

1suspended immediately, pending a hearing by the Department.
2Fines shall not be assessed in disciplinary actions involving
3physical or mental illness or impairment.
4    (c) The determination by a circuit court that a licensee is
5subject to involuntary admission or judicial admission as
6provided in the Mental Health and Developmental Disabilities
7Code operates as an automatic suspension. The suspension will
8end only upon a finding by a court that the licensee is no
9longer subject to the involuntary admission or judicial
10admission and issues an order so finding and discharging the
11licensee; and upon review of the order by the Secretary or his
12or her designee, the licensee may be allowed to resume his or
13her practice.
14    (d) The Department may refuse to issue or may suspend
15without hearing as provided for in the Code of Civil Procedure
16the license of any person who fails to file a return, to pay
17the tax, penalty, or interest shown in a filed return, or to
18pay any final assessment of the tax, penalty, or interest as
19required by any tax Act administered by the Illinois Department
20of Revenue, until such time as the requirements of any such tax
21Act are satisfied.
22    (e) In enforcing this Section, the Department upon a
23showing of a possible violation may compel an individual
24licensed to practice under this Act, or who has applied for
25licensure under this Act, to submit to a mental or physical
26examination, or both, as required by and at the expense of the

 

 

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1Department. The Department may order the examining physician to
2present testimony concerning the mental or physical
3examination of the licensee or applicant. No information shall
4be excluded by reason of any common law or statutory privilege
5relating to communications between the licensee or applicant
6and the examining physician. The examining physicians shall be
7specifically designated by the Department. The individual to be
8examined may have, at his or her own expense, another physician
9of his or her choice present during all aspects of this
10examination. Failure of an individual to submit to a mental or
11physical examination, when directed, shall be grounds for the
12immediate suspension of his or her license until the individual
13submits to the examination if the Department finds that the
14refusal to submit to the examination was without reasonable
15cause as defined by rule.
16    In instances in which the Secretary immediately suspends a
17person's license for his or her failure to submit to a mental
18or physical examination, when directed, a hearing on that
19person's license must be convened by the Department within 15
20days after the suspension and completed without appreciable
21delay.
22    In instances in which the Secretary otherwise suspends a
23person's license pursuant to the results of a compelled mental
24or physical examination a hearing on that person's license must
25be convened by the Department within 15 days after the
26suspension and completed without appreciable delay. The

 

 

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1Department shall have the authority to review the subject
2individual's record of treatment and counseling regarding the
3impairment to the extent permitted by applicable federal
4statutes and regulations safeguarding the confidentiality of
5medical records.
6    An individual licensed under this Act and affected under
7this Section shall be afforded an opportunity to demonstrate to
8the Department that he or she can resume practice in compliance
9with acceptable and prevailing standards under the provisions
10of his or her license.
 
11    Section 80. Required form of contract.
12    (a) An agency contract must be in a record, signed or
13otherwise authenticated by the parties.
14    (b) An agency contract must state or contain the following:
15        (1) the amount and method of calculating the
16    consideration to be paid by the student-athlete for
17    services to be provided by the athlete agent under the
18    contract and any other consideration the athlete agent has
19    received or will receive from any other source for entering
20    into the contract or for providing the services;
21        (2) the name of any person not listed in the
22    application for licensure or renewal of licensure who will
23    be compensated because the student-athlete signed the
24    agency contract;
25        (3) a description of any expenses that the

 

 

HB3941- 21 -LRB101 15032 RPS 64082 b

1    student-athlete agrees to reimburse;
2        (4) a description of the services to be provided to the
3    student-athlete;
4        (5) the duration of the contract; and
5        (6) the date of execution.
6    (c) An agency contract must contain, in close proximity to
7the signature of the student-athlete, a conspicuous notice in
8boldface type in capital letters stating:
 
9
WARNING TO STUDENT-ATHLETE IF YOU SIGN THIS CONTRACT:
10        (1) YOU MAY LOSE YOUR ELIGIBILITY TO COMPETE AS A
11    STUDENT-ATHLETE IN YOUR SPORT;
12        (2) IF YOU HAVE AN ATHLETIC DIRECTOR, WITHIN 72 HOURS
13    AFTER ENTERING INTO THIS CONTRACT OR BEFORE YOUR NEXT
14    SCHEDULED ATHLETIC EVENT, WHICHEVER OCCURS FIRST, BOTH YOU
15    AND YOUR ATHLETE AGENT MUST NOTIFY YOUR ATHLETIC DIRECTOR;
16    AND
17        (3) YOU MAY CANCEL THIS CONTRACT WITHIN 14 DAYS AFTER
18    SIGNING IT. CANCELLATION OF THIS CONTRACT MAY NOT REINSTATE
19    YOUR ELIGIBILITY.
 
20    (d) An agency contract that does not conform to this
21Section is voidable by the student-athlete. If a
22student-athlete voids an agency contract, then the
23student-athlete is not required to pay any consideration under
24the contract or to return any consideration received from the

 

 

HB3941- 22 -LRB101 15032 RPS 64082 b

1athlete agent to induce the student-athlete to enter into the
2contract.
3    (e) The athlete agent shall give a record of the signed or
4otherwise authenticated agency contract to the student-athlete
5at the time of execution.
 
6    Section 85. Student-athlete's right to cancel.
7    (a) A student-athlete may cancel an agency contract by
8giving notice of the cancellation to the athlete agent in a
9record within 14 days after the contract is signed.
10    (b) A student-athlete may not waive the right to cancel an
11agency contract.
12    (c) If a student-athlete cancels an agency contract, then
13the student-athlete is not required to pay any consideration
14under the contract or to return any consideration received from
15the athlete agent to induce the student-athlete to enter into
16the contract.
 
17    Section 90. Notice to educational institution.
18    (a) Within 72 hours after entering into an agency contract
19or before the next scheduled athletic event in which the
20student-athlete may participate, whichever occurs first, the
21athlete agent shall give notice in a record of the existence of
22the contract to the athletic director of the educational
23institution at which the student-athlete is enrolled or the
24athlete agent has reasonable grounds to believe the

 

 

HB3941- 23 -LRB101 15032 RPS 64082 b

1student-athlete intends to enroll.
2    (b) Within 72 hours after entering into an agency contract
3or before the next athletic event in which the student-athlete
4may participate, whichever occurs first, the student-athlete
5shall inform the athletic director of the educational
6institution at which the student-athlete is enrolled that he or
7she has entered into an agency contract.
 
8    Section 95. Required records.
9    (a) An athlete agent shall retain the following records for
10a period of 5 years:
11        (1) the name and address of each individual represented
12    by the athlete agent;
13        (2) any agency contract entered into by the athlete
14    agent; and
15        (3) any direct costs incurred by the athlete agent in
16    the recruitment or solicitation of a student-athlete to
17    enter into an agency contract.
18    (b) Records required by subsection (a) of this Section to
19be retained shall be open to inspection by the Department
20during normal business hours.
 
21    Section 100. Injunctive action; cease and desist order.
22    (a) If any person violates the provisions of this Act, then
23the Secretary, in the name of the People of the State of
24Illinois, through the Attorney General or the State's Attorney

 

 

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1of the county in which the violation is alleged to have
2occurred, may petition for an order enjoining the violation or
3for an order enforcing compliance with this Act. Upon the
4filing of a verified petition, the court with appropriate
5jurisdiction may issue a temporary restraining order, without
6notice or bond, and may preliminarily and permanently enjoin
7the violation. If it is established that the person has
8violated or is violating the injunction, then the court may
9punish the offender for contempt of court. Proceedings under
10this Section are in addition to, and not in lieu of, all other
11remedies and penalties provided by this Act.
12    (b) Whenever, in the opinion of the Department, a person
13violates any provision of this Act, the Department may issue a
14rule to show cause why an order to cease and desist should not
15be entered against that person. The rule shall clearly set
16forth the grounds relied upon by the Department and shall allow
17at least 7 days from the date of the rule to file an answer
18satisfactory to the Department. Failure to answer to the
19satisfaction of the Department shall cause an order to cease
20and desist to be issued.
 
21    Section 105. Investigations; notice and hearing. The
22Department may investigate the actions of any applicant or of
23any person or persons rendering or offering to render services
24as an athlete agent or any person holding or claiming to hold a
25license as an athlete agent. The Department shall, before

 

 

HB3941- 25 -LRB101 15032 RPS 64082 b

1revoking, suspending, placing on probation, reprimanding, or
2taking any other disciplinary or nondisciplinary action under
3Section 75 of this Act, at least 30 days before the date set
4for the hearing, (i) notify the accused in writing of the
5charges made and the time and place for the hearing on the
6charges, (ii) direct him or her to file a written answer to the
7charges with the Department under oath within 20 days after the
8service on him or her of the notice, and (iii) inform the
9accused that, if he or she fails to answer, default will be
10taken against him or her or that his or her license may be
11suspended, revoked, placed on probationary status, or other
12disciplinary action taken with regard to the license, including
13limiting the scope, nature, or extent of his or her practice,
14as the Department may consider proper. At the time and place
15fixed in the notice, the Department shall proceed to hear the
16charges and the parties or their counsel shall be accorded
17ample opportunity to present any pertinent statements,
18testimony, evidence, and arguments. The Department may
19continue the hearing from time to time. In case the person,
20after receiving the notice, fails to file an answer, his or her
21license may, in the discretion of the Department, be suspended,
22revoked, placed on probationary status, or the Department may
23take whatever disciplinary action considered proper, including
24limiting the scope, nature, or extent of the person's practice
25or the imposition of a fine, without a hearing, if the act or
26acts charged constitute sufficient grounds for that action

 

 

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1under this Act. The written notice may be served by personal
2delivery or by certified mail to the address specified by the
3accused in his or her last notification with the Department.
 
4    Section 110. Record of proceedings; transcript. The
5Department, at its expense, shall preserve a record of all
6proceedings at the formal hearing of any case. The notice of
7hearing, complaint, all other documents in the nature of
8pleadings, written motions filed in the proceedings, the
9transcripts of testimony, the report of the Hearing Officer,
10and orders of the Department shall be in the record of the
11proceeding. The Department shall furnish a transcript of such
12record to any person interested in such hearing upon payment of
13the fee required under Section 2105-115 of the Department of
14Professional Regulation Law of the Civil Administrative Code of
15Illinois.
 
16    Section 115. Subpoenas; depositions; oaths. The Department
17has the power to subpoena documents, books, records, or other
18materials and to bring before it any person and to take
19testimony either orally or by deposition, or both, with the
20same fees and mileage and in the same manner as prescribed in
21civil cases in the courts of this State.
22    The Secretary, the designated hearing officer, and other
23parties designated by the Department have the power to
24administer oaths to witnesses at any hearing that the

 

 

HB3941- 27 -LRB101 15032 RPS 64082 b

1Department is authorized to conduct, and any other oaths
2authorized in any Act administered by the Department.
 
3    Section 120. Compelling testimony. Any circuit court, upon
4application of the Department or designated hearing officer may
5enter an order requiring the attendance of witnesses and their
6testimony, and the production of documents, papers, files,
7books, and records in connection with any hearing or
8investigation. The court may compel obedience to its order by
9proceedings for contempt.
 
10    Section 125. Findings and recommendations. At the
11conclusion of the hearing, the Hearing Officer shall present to
12the Secretary a written report of its findings of fact,
13conclusions of law, and recommendations. The report shall
14contain a finding whether or not the accused person violated
15this Act or its rules or failed to comply with the conditions
16required in this Act or its rules. The Hearing Officer shall
17specify the nature of any violations or failure to comply and
18shall make its recommendations to the Secretary. In making
19recommendations for any disciplinary actions, the Hearing
20Officer may take into consideration all facts and circumstances
21bearing upon the reasonableness of the conduct of the accused
22and the potential for future harm to the public, including, but
23not limited to, previous discipline of the accused by the
24Department, intent, degree of harm to the public, and

 

 

HB3941- 28 -LRB101 15032 RPS 64082 b

1likelihood of harm in the future, any restitution made by the
2accused, and whether the incident or incidents contained in the
3complaint appear to be isolated or represent a continuing
4pattern of conduct. In making its recommendations for
5discipline, the Hearing Officer shall endeavor to ensure that
6the severity of the discipline recommended is reasonably
7related to the severity of the violation.
8    The report of findings of fact, conclusions of law, and
9recommendation of the Hearing Officer may, but shall not be
10required to, be the basis for the Department's order refusing
11to issue, restore, or renew a license, or otherwise
12disciplining a licensee. If the Secretary disagrees with the
13recommendations of the Hearing Officer, then the Secretary may
14issue an order in contravention. The finding is not admissible
15in evidence against the person in a criminal prosecution
16brought for a violation of this Act, but the hearing and
17finding are not a bar to a criminal prosecution brought for a
18violation of this Act.
 
19    Section 130. Rehearing. At the conclusion of the hearing, a
20copy of the Hearing Officer's report shall be served upon the
21applicant or licensee by the Department, either personally or
22as provided in this Act for the service of a notice of hearing.
23Within 20 days after service, the applicant or licensee may
24present to the Department a motion in writing for a rehearing,
25which shall specify the particular grounds for rehearing. The

 

 

HB3941- 29 -LRB101 15032 RPS 64082 b

1Department may respond to the motion for rehearing within 20
2days after its service on the Department. If no motion for
3rehearing is filed, then upon the expiration of the time
4specified for filing such a motion, or if a motion for
5rehearing is denied, then upon denial, the Secretary may enter
6an order in accordance with recommendations of the Hearing
7Officer except as provided in Section 135 of this Act. If the
8applicant or licensee orders from the reporting service and
9pays for a transcript of the record within the time for filing
10a motion for rehearing, then the 20-day period within which a
11motion may be filed shall commence upon the delivery of the
12transcript to the applicant or licensee.
 
13    Section 135. Secretary; rehearing. Whenever the Secretary
14believes that substantial justice has not been done in the
15revocation, suspension, or refusal to issue, restore, or renew
16a license, or other discipline of an applicant or licensee, he
17or she may order a rehearing by the same or a different Hearing
18Officer.
 
19    Section 140. Appointment of a hearing officer. The
20Secretary has the authority to appoint any attorney licensed to
21practice law in the State of Illinois to serve as the hearing
22officer in any action for refusal to issue, restore, or renew a
23license or to discipline a licensee. The hearing officer has
24full authority to conduct the hearing. The hearing officer

 

 

HB3941- 30 -LRB101 15032 RPS 64082 b

1shall report his or her findings of fact, conclusions of law,
2and recommendations to the Secretary. If the Secretary
3disagrees with the recommendation of the hearing officer, then
4the Secretary may issue an order in contravention of the
5recommendation.
 
6    Section 145. Order or certified copy; prima facie proof. An
7order or certified copy thereof, over the seal of the
8Department and purporting to be signed by the Secretary, is
9prima facie proof that:
10        (1) the signature is the genuine signature of the
11    Secretary; and
12        (2) the Secretary is duly appointed and qualified.
 
13    Section 150. Restoration of suspended or revoked license.
14At any time after the successful completion of a term of
15suspension or revocation of a license, the Department may
16restore it to the licensee, unless after an investigation and a
17hearing the Department determines that restoration is not in
18the public interest.
 
19    Section 155. Surrender of license. Upon the revocation or
20suspension of a license, the licensee shall immediately
21surrender his or her license to the Department. If the licensee
22fails to do so, then the Department has the right to seize the
23license.
 

 

 

HB3941- 31 -LRB101 15032 RPS 64082 b

1    Section 160. Summary suspension of a license. The Secretary
2may summarily suspend a license, without a hearing,
3simultaneously with the institution of proceedings for a
4hearing provided for in Section 105 of this Act, if the
5Secretary finds that evidence in the Secretary's possession
6indicates that the continuation of practice as an athlete agent
7would constitute an imminent danger to the public. In the event
8that the Secretary summarily suspends a license, without a
9hearing, a hearing must be commenced within 30 days after the
10suspension has occurred and concluded as expeditiously as
11practical.
 
12    Section 165. Administrative review; venue.
13    (a) All final administrative decisions of the Department
14are subject to judicial review under the Administrative Review
15Law and its rules. The term "administrative decision" is
16defined as in Section 3-101 of the Code of Civil Procedure.
17    (b) Proceedings for judicial review shall be commenced in
18the circuit court of the county in which the party applying for
19review resides, but if the party is not a resident of Illinois,
20the venue shall be in Sangamon County.
 
21    Section 170. Certifications of record; costs. The
22Department shall not be required to certify any record to the
23court, to file an answer in court, or to otherwise appear in

 

 

HB3941- 32 -LRB101 15032 RPS 64082 b

1any court in a judicial review proceeding unless and until the
2Department has received from the plaintiff payment of the costs
3of furnishing and certifying the record, which costs shall be
4determined by the Department. Failure on the part of the
5plaintiff to file the receipt in court is grounds for dismissal
6of the action.
 
7    Section 175. Criminal penalties.
8    (a) Any person who is found to have violated any provision
9of this Act is guilty of a Class A misdemeanor. On conviction
10of a second or subsequent offense, the violator shall be guilty
11of a Class 4 felony.
12    (b) In addition, an athlete agent or an individual holding
13oneself out as an athlete agent shall be guilty of a Class A
14misdemeanor if he or she, with the intent to induce a
15student-athlete to enter into an agency contract, does any of
16the following:
17        (1) gives any materially false or misleading
18    information or makes a materially false promise or
19    representation;
20        (2) furnishes anything of value to a student-athlete
21    before the student-athlete enters into the agency
22    contract;
23        (3) furnishes anything of value to any individual other
24    than the student-athlete or another athlete agent;
25        (4) initiates contact with a student-athlete unless

 

 

HB3941- 33 -LRB101 15032 RPS 64082 b

1    licensed under this Act;
2        (5) refuses or fails to retain or permit inspection of
3    the records as required under this Act;
4        (6) provides materially false or misleading
5    information in an application for licensure;
6        (7) predates or postdates an agency contract; or
7        (8) fails to notify a student-athlete before the
8    student-athlete signs or otherwise authenticates an agency
9    contract for a particular sport that the signing or
10    authentication may make the student-athlete ineligible to
11    participate as a student-athlete in that sport.
 
12    Section 180. Civil penalties.
13    (a) In addition to any other penalty provided by law, any
14person who violates this Act shall forfeit and pay a civil
15penalty to the Department in an amount not to exceed $10,000
16for each violation as determined by the Department. The civil
17penalty shall be assessed by the Department in accordance with
18the provisions of this Act.
19    (b) The Department has the authority and power to
20investigate any and all unlicensed activity.
21    (c) The civil penalty shall be paid within 60 days after
22the effective date of the order imposing the civil penalty. The
23order shall constitute a judgment and may be filed and
24execution had thereon in the same manner as any judgment from
25any court of record.

 

 

HB3941- 34 -LRB101 15032 RPS 64082 b

1    (d) All moneys collected under this Section shall be
2deposited into the General Professions Dedicated Fund.
 
3    Section 185. Civil remedies; educational institutions.
4    (a) An educational institution has a right of action
5against an athlete agent or a former student-athlete for
6damages caused by a violation of this Act. In an action under
7this Section, the court may award to the prevailing party costs
8and reasonable attorney's fees.
9    (b) Damages of an educational institution under subsection
10(a) include losses and expenses incurred because, as a result
11of the conduct of an athlete agent or former student-athlete,
12the educational institution was injured by a violation of this
13Act or was penalized, disqualified, or suspended from
14participation in athletics by a national association for the
15promotion and regulation of athletics, by an athletic
16conference, or by reasonable self-imposed disciplinary action
17taken to mitigate sanctions likely to be imposed by such an
18organization.
19    (c) A right of action under this Section does not accrue
20until the educational institution discovers or by the exercise
21of reasonable diligence would have discovered the violation by
22the athlete agent or former student-athlete.
23    (d) Any liability of the athlete agent or the former
24student-athlete under this Section is several and not joint.
25    (e) This Act does not restrict rights, remedies, or

 

 

HB3941- 35 -LRB101 15032 RPS 64082 b

1defenses of any person under law or equity.
 
2    Section 190. Consent order. At any point in the proceedings
3as provided in Sections 100 through 145 and Section 165, both
4parties may agree to a negotiated consent order. The consent
5order shall be final upon signature of the Secretary.
 
6    Section 195. Illinois Administrative Procedure Act;
7application. The Illinois Administrative Procedure Act is
8expressly adopted and incorporated in this Act as if all of the
9provisions of that Act were included in this Act, except that
10the provision of subsection (d) of Section 10-65 of the
11Illinois Administrative Procedure Act, which provides that at
12hearings the licensee has the right to show compliance with all
13lawful requirements for retention or continuation or renewal of
14the license, is specifically excluded. For the purpose of this
15Act, the notice required under Section 10-25 of the Illinois
16Administrative Procedure Act is considered sufficient when
17mailed to the last known address of a party.
 
18    Section 200. Home rule. The regulation and licensing as an
19athlete agent are exclusive powers and functions of the State.
20A home rule unit may not regulate or license an athlete agent
21or the practice as an athlete agent, except as provided under
22Section 20 of this Act. This Section is a denial and limitation
23of home rule powers and functions under subsection (h) of

 

 

HB3941- 36 -LRB101 15032 RPS 64082 b

1Section 6 of Article VII of the Illinois Constitution.
 
2    Section 205. Relation to electronic signatures in Global
3and National Commerce Act. This Act modifies, limits, and
4supersedes the federal Electronic Signatures in Global and
5National Commerce Act, 15 U.S.C. Section 7001, et seq., but
6does not modify, limit, or supersede Section 101(c) of that
7Act, 15 U.S.C. Section 7001(c), or authorize electronic
8delivery of any of the notices described in Section 103(b) of
9that Act, 15 U.S.C. Section 7003(b).
 
10    Section 210. Severability. The provisions of this Act are
11severable under Section 1.31 of the Statute on Statutes.
 
12    Section 215. Agent for service of process. By acting as an
13athlete agent in this State, a nonresident individual appoints
14the Department as the individual's agent for service of process
15in any civil action in this State related to the individual's
16acting as an athlete agent in this State.
 
17    Section 999. Effective date. This Act takes effect January
181, 2021.