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S.B. 60
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UNIFORM ATHLETE AGENTS ACT
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2001 GENERAL SESSION
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STATE OF UTAH
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Sponsor: Lyle W. Hillyard
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This act enacts the Uniform Athlete Agents Act. The act defines terms. The act requires
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registration of athlete agents and describes the form of the application for registration. The
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act creates requirements for agency contracts including warnings to student athletes. The
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act requires a student-athlete to notify the educational institution where the student is
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enrolled within 72 hours of signing an agency contract. The act allows a student-athlete to
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cancel an agency contract within 14 days after it is signed. The act requires an athlete agent
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to retain records. The act prohibits an athlete agent from engaging in certain conduct. The
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act provides criminal, civil, and administrative penalties.
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This act affects sections of Utah Code Annotated 1953 as follows:
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ENACTS:
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15-9-101, Utah Code Annotated 1953
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15-9-102, Utah Code Annotated 1953
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15-9-103, Utah Code Annotated 1953
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15-9-104, Utah Code Annotated 1953
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15-9-105, Utah Code Annotated 1953
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15-9-106, Utah Code Annotated 1953
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15-9-107, Utah Code Annotated 1953
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15-9-108, Utah Code Annotated 1953
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15-9-109, Utah Code Annotated 1953
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15-9-110, Utah Code Annotated 1953
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15-9-111, Utah Code Annotated 1953
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15-9-112, Utah Code Annotated 1953
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15-9-113, Utah Code Annotated 1953
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15-9-114, Utah Code Annotated 1953
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15-9-115, Utah Code Annotated 1953
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15-9-116, Utah Code Annotated 1953
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15-9-117, Utah Code Annotated 1953
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15-9-118, Utah Code Annotated 1953
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15-9-119, Utah Code Annotated 1953
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Be it enacted by the Legislature of the state of Utah:
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Section 1.
Section
15-9-101
is enacted to read:
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CHAPTER 9. UNIFORM ATHLETE AGENTS ACT
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15-9-101. Title.
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This chapter is known as the "Uniform Athlete Agents Act."
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Section 2.
Section
15-9-102
is enacted to read:
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15-9-102. Definitions.
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As used in this chapter:
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(1) "Agency contract" means an agreement in which a student-athlete authorizes a person
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to negotiate or solicit on behalf of the student-athlete a professional-sports-services contract or an
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endorsement contract.
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(2) "Athlete agent" means an individual who enters into an agency contract with a
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student-athlete or, directly or indirectly, recruits or solicits a student-athlete to enter into an agency
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contract. The term includes an individual who represents to the public that the individual is an
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athlete agent. The term does not include a spouse, parent, sibling, or grandparent of the
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student-athlete or an individual acting solely on behalf of a professional sports team or professional
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sports organization.
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(3) "Athletic director" means an individual responsible for administering the overall
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athletic program of an educational institution or, if an educational institution has separately
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administered athletic programs for male students and female students, the athletic program for
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males or the athletic program for females, as appropriate.
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(4) "Contact" means a communication, direct or indirect, between an athlete agent and a
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student-athlete, to recruit or solicit the student-athlete to enter into an agency contract.
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(5) "Endorsement contract" means an agreement under which a student-athlete is employed
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or receives consideration to use on behalf of the other party any value that the student-athlete may
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have because of publicity, reputation, following, or fame obtained because of athletic ability or
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performance.
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(6) "Intercollegiate sport" means a sport played at the collegiate level for which eligibility
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requirements for participation by a student-athlete are established by a national association for the
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promotion or regulation of collegiate athletics.
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(7) "Person" means an individual, corporation, business trust, estate, trust, partnership,
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limited liability company, association, joint venture, government; governmental subdivision,
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agency, or instrumentality; public corporation, or any other legal or commercial entity.
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(8) "Professional-sports-services contract" means an agreement under which an individual
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is employed or agrees to render services as a player on a professional sports team, with a
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professional sports organization, or as a professional athlete.
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(9) "Record" means information that is inscribed on a tangible medium or that is stored
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in an electronic or other medium and is retrievable in perceivable form.
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(10) "Registration" means registration as an athlete agent pursuant to this chapter.
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(11) "State" means a state of the United States, the District of Columbia, Puerto Rico, the
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United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the
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United States.
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(12) "Student-athlete" means an individual who engages in, is eligible to engage in, or may
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be eligible in the future to engage in, any intercollegiate sport. If an individual is permanently
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ineligible to participate in a particular intercollegiate sport, the individual is not a student-athlete
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for purposes of that sport.
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Section 3.
Section
15-9-103
is enacted to read:
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15-9-103. Service of process -- Subpoenas.
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By acting as an athlete agent in this state, a nonresident individual appoints the executive
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director of the Department of Commerce as the individual's agent for service of process in any civil
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action in this state related to the individual's acting as an athlete agent in this state.
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Section 4.
Section
15-9-104
is enacted to read:
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15-9-104. Athlete agents -- Registration required -- Void contracts.
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(1) Except as otherwise provided in Subsection (2), an individual may not act as an athlete
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agent in this state without holding a certificate of registration under Section
15-9-106
or
15-9-108
.
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(2) Before being issued a certificate of registration, an individual may act as an athlete
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agent in this state for all purposes except signing an agency contract, if:
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(a) a student-athlete or another person acting on behalf of the student-athlete initiates
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communication with the individual; and
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(b) within seven days after an initial act as an athlete agent, the individual submits an
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application for registration as an athlete agent in this state.
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(3) An agency contract resulting from conduct in violation of this section is void and the
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athlete agent shall return any consideration received under the contract.
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Section 5.
Section
15-9-105
is enacted to read:
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15-9-105. Registration as an athlete agent -- Form -- Requirements.
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(1) An applicant for registration shall submit an application for registration to the
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executive director of the Department of Commerce in a form prescribed by the executive director
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of the Department of Commerce. An application filed under this section is a public record under
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Title 63, Chapter 2, Government Records Access and Management Act. The application must be
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in the name of an individual and, except as otherwise provided in Subsection (2), signed or
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otherwise authenticated by the applicant under penalty of perjury and state or contain:
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(a) the name of the applicant and the address of the applicant's principal place of business;
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(b) the name of the applicant's business or employer, if applicable;
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(c) any business or occupation engaged in by the applicant for the five years immediately
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preceding the date of submission of the application;
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(d) a description of the applicant's:
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(i) formal training as an athlete agent;
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(ii) practical experience as an athlete agent; and
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(iii) educational background relating to the applicant's activities as an athlete agent;
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(e) the names and addresses of three individuals not related to the applicant who are
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willing to serve as references;
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(f) the name, sport, and last-known team for each individual for whom the applicant acted
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as an athlete agent during the five years next preceding the date of submission of the application;
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(g) the names and addresses of all persons who are:
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(i) with respect to the athlete agent's business if it is not a corporation, the partners,
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members, officers, managers, associates, or profit-sharers of the business; and
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(ii) with respect to a corporation employing the athlete agent, the officers, directors, and
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any shareholder of the corporation having an interest of 5% or greater;
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(h) whether the applicant or any person named pursuant to Subsection (1)(g) has been
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convicted of a crime that, if committed in this state, would be a crime involving moral turpitude
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or a felony, and identify the crime;
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(i) whether there has been any administrative or judicial determination that the applicant
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or any person named pursuant to Subsection (1)(g) has made a false, misleading, deceptive, or
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fraudulent representation;
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(j) any instance in which the conduct of the applicant or any person named pursuant to
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Subsection (1)(g) resulted in the imposition of a sanction, suspension, or declaration of ineligibility
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to participate in an interscholastic or intercollegiate athletic event on a student-athlete or
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educational institution;
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(k) any sanction, suspension, or disciplinary action taken against the applicant or any
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person named pursuant to Subsection (1)(g) arising out of occupational or professional conduct;
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and
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(l) whether there has been any denial of an application for, suspension or revocation of,
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or refusal to renew, the registration or licensure of the applicant or any person named pursuant to
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Subsection (1)(g) as an athlete agent in any state.
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(2) An individual who has submitted an application for, and holds a certificate of,
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registration or licensure as an athlete agent in another state, may submit a copy of the application
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and certificate in lieu of submitting an application in the form prescribed pursuant to Subsection
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(1). The executive director of the Department of Commerce shall accept the application and the
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certificate from the other state as an application for registration in this state if the application to
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the other state:
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(a) was submitted in the other state within six months immediately preceding the
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submission of the application in this state and the applicant certifies that the information contained
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in the application is current;
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(b) contains information substantially similar to or more comprehensive than that required
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in an application submitted in this state; and
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(c) was signed by the applicant under penalty of perjury.
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Section 6.
Section
15-9-106
is enacted to read:
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15-9-106. Certificate of registration -- Issuance or denial -- Renewal.
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(1) Except as otherwise provided in Subsection (2), the executive director of the
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Department of Commerce shall issue a certificate of registration to an individual who complies
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with Subsection
15-9-105
(1) or whose application has been accepted under Subsection
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15-9-105
(2).
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(2) The executive director of the Department of Commerce may refuse to issue a certificate
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of registration if the executive director of the Department of Commerce determines that the
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applicant has engaged in conduct that has a significant adverse effect on the applicant's fitness to
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act as an athlete agent. In making the determination, the executive director of the Department of
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Commerce may consider whether the applicant has:
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(a) been convicted of a crime that, if committed in this state, would be a crime involving
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moral turpitude or a felony;
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(b) made a materially false, misleading, deceptive, or fraudulent representation in the
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application or as an athlete agent;
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(c) engaged in conduct that would disqualify the applicant from serving in a fiduciary
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capacity;
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(d) engaged in conduct prohibited by Section
15-9-114
;
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(e) had a registration or licensure as an athlete agent suspended, revoked, or denied or been
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refused renewal of registration or licensure as an athlete agent in any state;
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(f) engaged in conduct the consequence of which was that a sanction, suspension, or
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declaration of ineligibility to participate in an interscholastic or intercollegiate athletic event was
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imposed on a student-athlete or educational institution; or
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(g) engaged in conduct that significantly, adversely reflects on the applicant's credibility,
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honesty, or integrity.
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(3) In making a determination under Subsection (2), the executive director of the
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Department of Commerce shall consider:
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(a) how recently the conduct occurred;
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(b) the nature of the conduct and the context in which it occurred; and
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(c) any other relevant conduct of the applicant.
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(4) An athlete agent may apply to renew a registration by submitting an application for
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renewal in a form prescribed by the executive director of the Department of Commerce. An
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application filed under this section is a public record under Title 63, Chapter 2, Government
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Records Access and Management Act. The application for renewal must be signed by the
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applicant under penalty of perjury and must contain current information on all matters required in
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an original registration.
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(5) An individual who has submitted an application for renewal of registration or licensure
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in another state, in lieu of submitting an application for renewal in the form prescribed pursuant
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to Subsection (4), may file a copy of the application for renewal and a valid certificate of
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registration or licensure from the other state. The executive director of the Department of
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Commerce shall accept the application for renewal from the other state as an application for
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renewal in this state if the application to the other state:
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(a) was submitted in the other state within six months immediately preceding the filing in
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this state and the applicant certifies the information contained in the application for renewal is
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current;
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(b) contains information substantially similar to or more comprehensive than that required
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in an application for renewal submitted in this state; and
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(c) was signed by the applicant under penalty of perjury.
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(6) A certificate of registration or a renewal of a registration is valid for two years.
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Section 7.
Section
15-9-107
is enacted to read:
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15-9-107. Suspension, revocation, or refusal to renew registration.
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(1) The executive director of the Department of Commerce may suspend, revoke, or refuse
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to renew a registration for conduct that would have justified denial of registration under Subsection
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15-9-106
(2).
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(2) The executive director of the Department of Commerce may deny, suspend, revoke,
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or refuse to renew a certificate of registration or licensure only after proper notice and an
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opportunity for a hearing. Title 63, Chapter 46b, Administrative Procedures Act, applies to this
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chapter.
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Section 8.
Section
15-9-108
is enacted to read:
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15-9-108. Temporary registration.
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The executive director of the Department of Commerce may issue a temporary certificate
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of registration while an application for registration or renewal of registration is pending.
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Section 9.
Section
15-9-109
is enacted to read:
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15-9-109. Registration and renewal fees.
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(1) An application for registration or renewal of registration must be accompanied by a fee
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in an amount determined by the Department of Commerce in accordance with Section
63-38-3.2
.
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(2) The Department of Commerce shall establish fees for:
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(a) an initial application for registration;
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(b) an application for registration based upon a certificate of registration or licensure
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issued by another state;
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(c) an application for renewal of registration; and
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(d) an application for renewal of registration based upon an application for renewal of
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registration or licensure submitted in another state.
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Section 10.
Section
15-9-110
is enacted to read:
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15-9-110. Required form of contract.
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(1) An agency contract must be in a record, signed or otherwise authenticated by the
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parties.
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(2) An agency contract must state or contain:
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(a) the amount and method of calculating the consideration to be paid by the
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student-athlete for services to be provided by the athlete agent under the contract and any other
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consideration the athlete agent has received or will receive from any other source for entering into
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the contract or for providing the services;
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(b) the name of any person not listed in the application for registration or renewal of
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registration who will be compensated because the student-athlete signed the agency contract;
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(c) a description of any expenses that the student-athlete agrees to reimburse;
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(d) a description of the services to be provided to the student-athlete;
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(e) the duration of the contract; and
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(f) the date of execution.
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(3) An agency contract must contain, in close proximity to the signature of the
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student-athlete, a conspicuous notice in boldface type in capital letters stating:
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WARNING TO STUDENT-ATHLETE
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IF YOU SIGN THIS CONTRACT:
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(1) YOU MAY LOSE YOUR ELIGIBILITY TO COMPETE AS A
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STUDENT-ATHLETE IN YOUR SPORT;
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(2) IF YOU HAVE AN ATHLETIC DIRECTOR, WITHIN 72 HOURS AFTER
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ENTERING INTO THIS CONTRACT, BOTH YOU AND YOUR ATHLETE AGENT MUST
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NOTIFY YOUR ATHLETIC DIRECTOR; AND
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(3) YOU MAY CANCEL THIS CONTRACT WITHIN 14 DAYS AFTER SIGNING IT.
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CANCELLATION OF THIS CONTRACT MAY NOT REINSTATE YOUR ELIGIBILITY.
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(4) An agency contract that does not conform to this section is voidable by the
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student-athlete. If a student-athlete voids an agency contract, the student-athlete is not required
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to pay any consideration under the contract or to return any consideration received from the athlete
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agent to induce the student-athlete to enter into the contract.
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(5) The athlete agent shall give a record of the signed or otherwise authenticated agency
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contract to the student-athlete at the time of execution.
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Section 11.
Section
15-9-111
is enacted to read:
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15-9-111. Notice to educational institution.
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(1) Within 72 hours after entering into an agency contract or before the next scheduled
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athletic event in which the student-athlete may participate, whichever occurs first, the athlete agent
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shall give notice in a record of the existence of the contract to the athletic director of the
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educational institution at which the student-athlete is enrolled or the athlete agent has reasonable
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grounds to believe the student-athlete intends to enroll.
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(2) Within 72 hours after entering into an agency contract or before the next athletic event
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in which the student-athlete may participate, whichever occurs first, the student-athlete shall
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inform the athletic director of the educational institution at which the student-athlete is enrolled
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that he or she has entered into an agency contract.
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Section 12.
Section
15-9-112
is enacted to read:
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15-9-112. Student-athlete's right to cancel.
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(1) A student-athlete may cancel an agency contract by giving notice of the cancellation
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to the athlete agent in a record within 14 days after the contract is signed.
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(2) A student-athlete may not waive the right to cancel an agency contract.
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(3) If a student-athlete cancels an agency contract, the student-athlete is not required to pay
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any consideration under the contract or to return any consideration received from the athlete agent
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to induce the student-athlete to enter into the contract.
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Section 13.
Section
15-9-113
is enacted to read:
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15-9-113. Required records.
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(1) An athlete agent shall retain the following records for a period of five years:
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(a) the name and address of each individual represented by the athlete agent;
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(b) any agency contract entered into by the athlete agent; and
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(c) any direct costs incurred by the athlete agent in the recruitment or solicitation of a
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student-athlete to enter into an agency contract.
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(2) Records required by Subsection (1) to be retained are open to inspection by the
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executive director of the Department of Commerce during normal business hours.
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Section 14.
Section
15-9-114
is enacted to read:
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15-9-114. Prohibited conduct.
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(1) An athlete agent, with the intent to induce a student-athlete to enter into an agency
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contract, may not:
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(a) give any materially false or misleading information or make a materially false promise
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or representation;
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(b) furnish anything of value to a student-athlete before the student-athlete enters into the
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agency contract; or
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(c) furnish anything of value to any individual other than the student-athlete or another
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registered athlete agent.
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(2) An athlete agent may not intentionally:
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(a) initiate contact with a student-athlete unless registered under this chapter;
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(b) refuse or fail to retain or permit inspection of the records required to be retained by
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Section
15-9-113
;
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(c) fail to register when required by Section
15-9-104
;
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(d) provide materially false or misleading information in an application for registration or
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renewal of registration;
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(e) predate or postdate an agency contract; or
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(f) fail to notify a student-athlete before the student-athlete signs or otherwise authenticates
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an agency contract for a particular sport that the signing or authentication may make the
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student-athlete ineligible to participate as a student-athlete in that sport.
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Section 15.
Section
15-9-115
is enacted to read:
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15-9-115. Criminal penalties.
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An athlete agent who violates Section
15-9-114
is guilty of a class A misdemeanor.
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Section 16.
Section
15-9-116
is enacted to read:
308
15-9-116. Civil remedies.
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(1) An educational institution has a right of action against an athlete agent or a former
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student-athlete for damages caused by a violation of this chapter. In an action under this section,
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the court may award to the prevailing party costs and reasonable attorney's fees.
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(2) Damages of an educational institution under Subsection (1) include losses and
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expenses incurred because, as a result of the conduct of an athlete agent or former student-athlete,
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the educational institution was injured by a violation of this chapter or was penalized, disqualified,
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or suspended from participation in athletics by a national association for the promotion and
316
regulation of athletics, by an athletic conference, or by reasonable self-imposed disciplinary action
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taken to mitigate sanctions likely to be imposed by such an organization.
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(3) A right of action under this section does not accrue until the educational institution
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discovers or by the exercise of reasonable diligence would have discovered the violation by the
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athlete agent or former student-athlete.
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(4) Any liability of the athlete agent or the former student-athlete under this section is
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several and not joint.
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(5) This chapter does not restrict rights, remedies, or defenses of any person under law or
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equity.
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Section 17.
Section
15-9-117
is enacted to read:
326
15-9-117. Civil and administrative penalty.
327
(1) The executive director of the Department of Commerce may assess a civil penalty
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against an athlete agent not to exceed $25,000 for a violation of this chapter.
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(2) An administrative penalty collected under Subsection (1) shall be deposited into the
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General Fund.
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Section 18.
Section
15-9-118
is enacted to read:
332
15-9-118. Uniformity of application and construction.
333
In applying and construing this uniform act, consideration must be given to the need to
334
promote uniformity of the law with respect to its subject matter among states that enact it.
335
Section 19.
Section
15-9-119
is enacted to read:
336
15-9-119. Electronic Signatures in Global and National Commerce Act.
337
The provisions of this chapter governing the legal effect, validity, or enforceability of
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electronic records or signatures, and of contracts formed or performed with the use of such records
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or signatures conform to the requirements of Section 102 of the Electronic Signatures in Global
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and National Commerce Act, Pub. L. No. 106-229, 114 Stat. 464 (2000), and supersede, modify,
341
and limit the Electronic Signatures in Global and National Commerce Act.
Legislative Review Note
as of 1-12-01 9:11 AM
A limited legal review of this legislation raises no obvious constitutional or statutory concerns.