GOVERNOR'S VETO

Pursuant to Article V, Section 6, of the Constitution of Virginia, I veto House Bill 1819, which creates a registration requirement for athlete agents administered by the Director of the Department of Professional and Occupational Regulation (DPOR), sets out the requirements for registration and conduct of athlete agents, and provides for administrative, civil, and criminal penalties.

While this legislation has the worthy intent of consumer protection, it increases the size of government and the cost of doing business in Virginia without any current evidence of a recognizable threat to the public's health, safety, and welfare, or any known complaints regarding such agents being made to DPOR or other state agencies. Additionally, the Virginia Attorney General currently has the authority to bring civil actions against athlete agents under the federal Sports Agent Responsibility and Trust Act.

A similar regulatory program was enacted in Virginia in 1991 and repealed in 1992 due to a lack of participation. DPOR has estimated that approximately 20 individuals may become registered under this new requirement. Since DPOR is a Callahan Act agency it does not receive General Fund support and is thus responsible for charging fees sufficient to cover initial and ongoing operating costs and a proportionate share of agency support costs – approximately $101,500 annually. Because of the small number of likely registrants, the initial application fee and the renewable fee for a two year license are expected to be approximately $10,150 – an annual cost to each regulant of approximately $5,075.

Additionally, the failure of the legislature to adopt the amendment at the reconvened session to exclude licensed Virginia attorneys will place and additional, expensive licensing regimen on many such agents. The free enterprise system appears to be working well for sports agents at this time.

The burdens this new regulatory and fee structure would place on small business is too great, especially given the lack of documented concerns with athlete agents in Virginia and given that many are likely already licensed by other regulatory bodies.

Accordingly, I veto this bill.

GOVERNOR'S RECOMMENDATION

1. Line 19, enrolled, after student-athlete

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, an attorney licensed in the Commonwealth of Virginia,