This proposed rule project will promulgate rules necessary to implement 2019 Acts 143 and 180. The alternative to not implementing rule changes to bring the existing rules within SPS 150-154 into conformity with the statutory changes is to leave the rules as they are. This inconsistency between the statutory provisions and rules would create a lack of clarity for stakeholders as to what the law is. 4. Detailed explanation of statutory authority for the rule:
Section 227.11 (2) (a), Stats. states that “[e]ach agency may promulgate rules interpreting the provisions of any statute enforced or administered by the agency, if the agency considers it necessary to effectuate the purpose of the statute…” Section 440.09 (5), Stats. states that “[t]he department or credentialing board, as appropriate, may promulgate rules necessary to implement this section.” Section 440.999, Stats. states that “The department shall promulgate rules that define unprofessional conduct for purposes of s. 440.992 (2) (c).” Section 440.9915, Stats. states that ”An applicant for registration as an athlete agent shall submit an application for registration to the department in a form prescribed by the department.” 5. Estimate of amount of time that state employees will spend developing the rule and of other resources necessary to develop the rule:
Approximately 200 hours.
6. List with description of all entities that may be affected by the proposed rule:
Registered athlete agents, those seeking registration as an athlete agent, athletes, parents and legal guardians of athletes, and educational institutions.
7. Summary and preliminary comparison with any existing or proposed federal regulation that is intended to address the activities to be regulated by the proposed rule:
The Sports Agent Responsibility and Trust Act regulates athlete agents at the federal level.
Consumer Protection Provisions: 15 U.S.C. § 7802 to 7804
Athlete agents are prohibited from using false or misleading promises or things of value to persuade an athlete into signing an agency contract. It also requires a disclosure be provided to the athlete or his parent/guardian, and be acknowledged, that signing an agency contract may terminate the athlete’s eligibility to participate in college athletics, and that the athlete and the athlete agent must both inform the athletic director of the athlete’s institution of the contract within 72 hours. Further, athlete agents are prohibited from pre or post-dating a contract. Enforcement is carried out under the Federal Trade Commission Act, or may be investigated and violations pursued by a state attorney general.
Protections for Educational Institutions: 15 U.S.C. § 7805
Educational institutions affected by an agency agreement may sue athlete agents for damages.
Sense of Congress Declaration: 15 U.S.C. § 7807
Congress recommends that states adopt the UAAA.
8. Anticipated economic impact of implementing the rule:
The proposed rule will have minimal to no economic impact on small businesses and the state’s economy as a whole.
Approved for Publication:
Secretary
Date Submitted
