STAND. COM. REP. NO. 1418

Honolulu, Hawaii

RE: H.B. No. 66

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Health, to which was referred H.B. No. 66, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO ATHLETE AGENTS,"

begs leave to report as follows:

The purpose and intent of this measure is to repeal the existing Uniform Athlete Agents Act and replace it with the Revised Uniform Athlete Agents Act, which applies to financial advisers under certain circumstances and makes other changes to the Uniform Act to increase effectiveness and enforceability.

Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs, Department of Education, University of Hawai‘i System, and State Commission to Promote Uniform Legislation. Your Committee received comments on this measure from the Regulated Industries Complaints Office of the Department of Commerce and Consumer Affairs.

Your Committee finds that the improper recruitment of a student athlete who is still enrolled in an educational institution can cause substantial eligibility problems for both the student athlete and the educational institution, which in turn can lead to severe economic sanctions and loss of scholarships for the institution. According to testimony received by your Committee, the Uniform Athlete Agents Act, adopted by the Legislature in 2007, has helped to reduce improper contact between agents and student athletes. However, a variation of the athlete agent problem has been developing in the form of financial advisers who are not subject to the Uniform Athlete Agents Act.

This measure repeals the current Uniform Athlete Agents Act and replaces it with the Revised Uniform Athlete Agents Act, which expands applicability of the Uniform Act to financial advisers under certain circumstances and requires these individuals to register as athlete agents. This measure further recognizes the importance of protecting young student athletes and expands protections for athletes against illegal and unscrupulous acts by athlete agents and financial advisers.

Your Committee has amended this measure by:

(1) Clarifying that a certified athlete agent is an athlete agent that is certified by a bona fide national association that promotes or regulates intercollegiate athletics and establishes eligibility standards for participation by student athletes; and

(2) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Health that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 66, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 66, H.D. 1, S.D. 1, and be referred to your Committee on Judiciary.

Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection, and Health,

________________________________

ROSALYN H. BAKER, Chair