SB 0526 - Fiscal Note

Fiscal Note - SB 0526 - Regulates Contracts Between Agents & Collegiate Athletes

L.R. NO.  1751-01
BILL NO.  Truly Agreed To And Finally Passed SB 526
SUBJECT:  Amusement, Contract, Higher Education
TYPE:     Original
DATE:     May 20, 1996



                              FISCAL SUMMARY

                    ESTIMATED NET EFFECT ON STATE FUNDS

FUND AFFECTED               FY 1997         FY 1998         FY 1999

General Revenue             $37,116         $39,018         $38,741

Total Estimated
Net Effect on All
State Funds                 $37,116         $39,018         $38,741


                   ESTIMATED NET EFFECT ON FEDERAL FUNDS

FUND AFFECTED               FY 1997         FY 1998         FY 1999


Total Estimated
Net Effect on All
Federal Funds                    $0              $0              $0


                    ESTIMATED NET EFFECT ON LOCAL FUNDS

FUND AFFECTED               FY 1997         FY 1998         FY 1999

Local Government                 $0              $0              $0


                              FISCAL ANALYSIS

ASSUMPTION

Officials from Missouri University (MU), Northeast Missouri State University
(NEMO), Southwest Missouri State University (SMSU), and Central Missouri
State University (CMSU) assume no fiscal impact.

Officials from the Office of State Courts Administrator(CTS) assume no state
or local fiscal impact.

Officials from the Coordinating Board for Higher Education(CBH) assume no
state or local fiscal impact.

Secretary of State(SOS) officials assume their office would keep a registry
of athlete agents and would create a notification system with universities.

Officials assume that a total of 200 athlete agents would register
biennially, however, officials assume not all 200 agents would register at
the same time.  Fiscal impact estimates assume that 100 agents would register
each year.  This assumption is based on information supplied by the NCAA
which showed the number of registrants in states that have pursued this type
of legislation.

To perform these new duties officials estimate that one part-time (.50 FTE)
Clerk Typist II would be needed with annual cost for FY 97 (10 months)
$6,404; FY 98 $7,880; and $8,077 in FY 99.  Fringe Benefits would be, FY 97
$2,115; FY 98 $2,603, and $2,668 in FY 99.  Equipment and Expense for FY 97
$4,365; FY 98 $500; and $515 in FY 99.  Total cost would be (10 months) FY 97
$12,884; FY 98 $10,982 and $11,259 in FY 99.

Officials estimate income from the $500 registration fee to be $50,000
annually.  Estimates were based on the assumption that 100 athlete agents
would register each year; (100 x $500)


FISCAL IMPACT - State Government           FY 1997     FY 1998     FY 1999
                                          (10 Mo.)
Income to Secretary of State
  Registration Fee                         $50,000     $50,000     $50,000

Cost to Secretary of State
  Personal Service  (.50 FTE)             ($6,404)    ($7,880)    ($8,077)
  Fringe Benefits                         ($2,115)    ($2,603)    ($2,668)
  Expense and Equipment                   ($4,365)      ($500)      ($515)
Total Cost to Secretary of State (SOS)   ($12,884)   ($10,982)   ($11,259)

NET EFFECT TO GENERAL
REVENUE FUND                               $37,116     $39,018     $38,741


FISCAL IMPACT  - Local Government          FY 1997     FY 1998     FY 1999
                                          (10 Mo.)

                                                $0          $0          $0


DESCRIPTION

This act regulates contracts between agents and collegiate athletes.

Section 436.200 defines relevant terms, including "agent contract", "athlete
agent", "financial services contract", "professional sports services
contract", and "student athlete".

Section 436.205 requires athlete agents to register biennially with the
Secretary of State and pay a $500 registration fee.  Failure to register is a
Class B misdemeanor.  The Secretary of State could suspend or revoke the
registration of an athlete agent for failure to comply with this section.

Section 436.209 requires athlete agents and student athletes to notify the
college or university after a contractual relationship has been established.
Failure of the student athlete to provide this notification is an infraction,
while failure of the athlete agent to provide notification is a Class B
misdemeanor.  This section requires the inclusion of certain specific
statements and warnings in any contract between a student athlete and athlete
agent.  Failure to include these statements renders the contract
unenforceable, and would make the athlete agent and student athlete liable to
the college or university for damages and treble penalties.  Lastly, this
section provides a minimum 10 day window wherein the student can unilaterally
rescind a contract.  The student athlete could not waive his right to
rescind.

Section 436.212 prohibits the athlete agent from publishing or making false
or misleading statements to the student athlete.  Athlete agents are
prohibited from soliciting potential student athlete clients from college or
university employees.  Athlete agents are prohibited from inducing a student
athlete to enter into a contract.  Lastly, any person that violates a
provision of this section is guilty of a Class B misdemeanor.

This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.


SOURCES OF INFORMATION

Department of Economic Development
Secretary of State
Coordinating Board for Higher Education
Office of State Courts Administrator
University of Missouri
Northeast Missouri State University
Central Missouri State University
Southwest Missouri State University

NOT RESPONDING:  Southeast Missouri State University, Lincoln University