Senate Bill 297 with Senate Amendment 1

This Act adopts the Uniform Law Commission’s Revised Uniform Athlete Agents Act (“Revised Act”), revising Chapter 54, Title 24 of the Delaware Code, which is based on the Uniform Law Commission’s Uniform Athlete Agents Act (“Uniform Act”). The Uniform Law Commission “provides states with non-partisan, well-conceived and well-drafted legislation that brings clarity and stability to critical areas of state statutory law.” In the early 2000’s, Delaware and 42 other states adopted the Uniform Act. Delaware’s version of the Uniform Act included a Board of Athlete Agents Examiners (“Board”), which was sunsetted by the Joint Legislative Oversight and Sunset Committee in 2012 and removed from the Delaware Code by Senate Bill 184 of the 146th General Assembly (78 Del. Laws, c. 376). In addition to removing provisions related to the Board, Senate Bill 184 also removed provisions requiring athlete agents doing business in Delaware to be registered and subject to administrative oversight. In 2015, the Uniform Law Commission adopted the Revised Act to enhance protections for student athletes and educational institutions, create a uniform body of athlete agent registration information, and simplify the registration process. The changes made to the Uniform Act by the Revised Act became necessary as athlete agent tactics have become more advanced and the industry has become more sophisticated. The need for the Revised Act is highlighted by a recent FBI investigation into athlete agent activities related to the college basketball programs at a number of Division I schools. The need is also highlighted by the National Collegiate Athletic Association’s adoption of an interim policy in June 2021 that removes restrictions on student athletes receiving compensation for their name, image, and likeness. Coinciding with this change, there has been an increase in athlete agent registrations in states with laws requiring registration. The adoption of the Revised Act provides safeguards for student athletes by requiring that athlete agents be registered and that agency contracts contain specific notice provisions. The Revised Act has been enacted by 18 states, with 4 of those enactments occurring in 2021.