Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection and Housing, to which was referred S.B. No. 3146 entitled:

begs leave to report as follows:

The purpose of this measure is to establish uniform procedures and requirements for the representation of student athletes by athlete agents.

The Hawaii Commission on Uniform State Laws testified in support of this measure. The Department of Commerce and Consumer Affairs commented on the measure.

This measure adopts the Uniform Athletes Agent Act which provides for the regulation of athlete agents who represent student athletes. Under the proposed regulatory scheme, a person is prohibited from acting as an athlete agent in this State without a certificate of registration issued by the Department of Commerce and Consumer Affairs. Agency contracts offered by athlete agents must comply with statutory requirements, including disclosure requirements, or are voidable by the student athletes. Additionally, the measure imposes recordkeeping requirements, proscribes certain acts, and establishes penalties and remedies for violations.

Your Committee notes that the proposed law, while regulatory in nature, is different from other regulatory schemes that would ordinarily require an Auditor's "sunrise" review before adoption. First, this measure, like the State's boxing laws which protect boxers, is designed to protect a narrow and specific group of persons, i.e., student athletes, rather than the general public. Additionally, this measure is not proposed to address existing problems in the industry, but to prevent future problems from arising by putting prospective athlete agents on notice regarding the requirements for practicing in this State. Therefore, your Committee finds that a "sunrise" review would not serve its intended purpose and is not warranted.

Your Committee has amended this measure to reflect preferred drafting style.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection and Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3146, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3146, S.D. 1, and be referred to the Committee on Judiciary and Hawaiian Affairs.