The legislation was passed by voice vote in the Senate on Thursday and will now go to the president for his signature, reports ESPN.com.
"As a former coach, I witnessed time and again sports agents illegally using cash and gifts to recruit student-athletes," said Rep. Tom Osborne, R-Neb., the former Nebraska football coach. "This unethical behavior on behalf of the sports agents threatens the athletes' eligibility and harms the integrity of college sports."
The NCAA has rules, and some states have standards, for sports agents, but Rep. Bart Gordon, D-Tenn., principal author of the bill, said that hasn't stopped some unscrupulous agents from "aggressively pursuing these kids anyway, possibly ruining a chance to compete on the college level and get a degree."
The legislation would bar agents from recruiting student athletes by giving false or misleading information or providing anything of value to the athlete or his family before entering into a contract.
The agent must also disclose in writing that the athlete may lose NCAA eligibility after signing an agency contract, and requires the athlete and the agent to notify the school's athletic director that the athlete has signed a contract so the school does not play a now-ineligible athlete in a game.
Offenders would face civil actions by the Federal Trade Commission and state attorneys general and fines of up to $11,000 a day could be imposed for each offence.
