SB117: Bill Text

LRB-2419/1

KP:kjf

2019 - 2020 LEGISLATURE

2019 Senate BILL 117

March 20, 2019 - Introduced by Senator Jacque, cosponsored by Representatives Brooks, Tusler, Kuglitsch, Ramthun and Wichgers. Referred to Committee on Universities, Technical Colleges, Children and Families.

SB117,2,5 An Act to repeal 440.99 (4), 440.997 (2), 440.997 (3) and 440.997 (5); to renumber 440.994 (2) (a); to renumber and amend 440.9945 (1); to amend 440.99 (6), 440.99 (7), 440.99 (11), 440.991 (2) (b), 440.9915 (title), 440.9915 (1) (intro.), 440.9915 (1) (a), 440.9915 (1) (b), 440.9915 (1) (c), 440.9915 (1) (e), 440.9915 (1) (f), 440.9915 (1) (h), 440.9915 (1) (i), 440.9915 (1) (j), 440.9915 (1) (k), 440.9915 (1) (L), 440.992 (1), 440.992 (2) (intro.), 440.992 (2) (e), 440.992 (2) (f), 440.992 (2) (g), 440.992 (4), 440.9925 (1), 440.9925 (2), 440.994 (1), 440.994 (2) (intro.), 440.994 (3), 440.994 (4), 440.994 (5), 440.9945 (2), 440.995 (1), 440.995 (2), 440.995 (3), 440.9955 (1) (intro.), 440.9955 (1) (b), 440.9955 (1) (c), 440.9955 (2), 440.996 (1) (intro.), 440.996 (2) (intro.), 440.996 (2) (a), 440.996 (2) (b), 440.996 (2) (g), 440.997 (1), 440.9975 and 440.998; to repeal and recreate 440.99 (2), 440.9915 (2), 440.992 (5) and 440.9985; and to create 440.99 (4r), 440.99 (5d), 440.99 (6c), 440.99 (6r), 440.99 (8c), 440.99 (9m), 440.9915 (1) (bm), 440.9915 (1) (gm), 440.9915 (1) (he), 440.9915 (1) (hm), 440.9915 (1) (hs), 440.9915 (1) (m), 440.9915 (1) (n), 440.9915 (1) (o), 440.9925 (1m), 440.994 (2) (ag), 440.994 (3m), 440.994 (6), 440.9945 (1g), 440.9945 (3), 440.9945 (4), 440.9945 (5), 440.9945 (6), 440.9945 (7), 440.9945 (8), 440.997 (2m) and 440.997 (3m) of the statutes; relating to: adopting revisions to the state's uniform athlete agents act and providing a penalty.

Analysis by the Legislative Reference Bureau

In 2000, the Uniform Law Commission, also known as the National Conference of Commissioners on Uniform State Laws, promulgated the Uniform Athlete Agents Act (UAAA). Wisconsin adopted the UAAA in 2003 Wisconsin Act 150. In 2015, the Uniform Law Commission adopted the Revised Uniform Athlete Agents Act (RUAAA).

This bill adopts, with some modifications, the changes to the UAAA made by the RUAAA, including the changes discussed below.

Definition of “athlete agent”

Under current law, a person may not act as an athlete agent in Wisconsin unless the person is registered with the Department of Safety and Professional Services. The bill expands the definition of “athlete agent” to include, subject to the exceptions specified in the bill, an individual who does any of the following:

1. Directly or indirectly attempts to influence the choice of an athlete agent or the choice to enter into an agency contract or both by a student athlete. Such influence does not include giving advice in a family, coaching, or social situation unless the person giving the advice does so in order to receive an economic benefit from an athlete agent.

2. For compensation, procures employment or offers, promises, attempts, or negotiates to obtain employment for a student athlete as a professional athlete or member of a professional sports team or organization.

3. For compensation or in anticipation of compensation in connection with a student athlete's participation in athletics, serves the student athlete in an advisory capacity on a matter related to finances, business pursuits, or career management decisions.

4. In anticipation of representing a student athlete for a purpose related to the student athlete's participation in athletics, gives anything of value to the student athlete or another person; serves the student athlete in an advisory capacity on a matter related to finances, business pursuits, or career management decisions; or manages the business affairs of the student athlete by providing assistance with bills, payments, contracts, or taxes.

Applications for registration

The bill requires that certain additional information be submitted to DSPS in an application for registration as an athlete agent, including the following:

1. The applicant's social media accounts.

2. Whether, within the prior 15 years, the applicant has been a defendant or respondent in a civil proceeding.

3. Whether the applicant has an unsatisfied judgment or a judgment of continuing effect.

4. Whether, within the prior ten years, the applicant was adjudicated bankrupt or was an owner of a business that was adjudicated bankrupt.

5. Each state in which the applicant is registered or has applied for registration as an athlete agent.

6. Details concerning the applicant's certification or registration by a professional league or players association, including the date of any denial of an application for, suspension or revocation of, refusal to renew, withdrawal of, or termination of, the certification or registration or any reprimand or censure related to the certification or registration.

Reciprocal registration

The bill makes a number of changes to the requirements for reciprocal registration of out-of-state athlete agents, including the following:

1. Eliminates the requirement that an out-of-state athlete agent must have submitted his or her registration application to his or her home state within six months before the submission of an application for reciprocal registration in Wisconsin.

2. Requires DSPS to issue a certificate of registration to an applicant for reciprocal registration who satisfies the application requirements set forth in the bill and pays the initial credential fee if DSPS determines that the application and registration requirements of the applicant's home state are substantially similar to or more restrictive than the requirements in this state, the registration of the applicant's home state has not been revoked or suspended, and no action involving the applicant's conduct as an athlete agent is pending against the applicant or the applicant's registration in any state.

3. Requires DSPS to develop a common reciprocal registration form with other states and exchange information concerning athlete agents, including disciplinary information, with the other states.

Agency contracts

The bill requires that an agency contract between an athlete agent and a student athlete specify the states in which the athlete agent is registered and be accompanied by an acknowledgement of the student athlete that signing the agency contract may make the student athlete ineligible to participate in athletics at an educational institution.

Notice requirements

The bill establishes a number of new notice requirements, including the following:

1. If an athlete agent enters into an agency contract with a student athlete and the student athlete subsequently enrolls at an educational institution, the athlete agent must notify the educational institution of the existence of the contract.

2. Under certain conditions, if an athlete agent has a prior relationship with a student athlete and the student athlete enrolls at an educational institution and receives an athletic scholarship, the athlete agent must notify the educational institution of the relationship.

3. An athlete agent must notify the educational institution at which a student athlete is enrolled before the athlete agent or another person on behalf of the athlete agent communicates or attempts to communicate with the student athlete to influence the student athlete to enter into an agency contract.

4. If a communication or attempt to communicate with an athlete agent is initiated by a student athlete, the athlete agent must notify the educational institution at which the student athlete is enrolled.

Under the bill, none of those notices are subject to disclosure under Wisconsin's public records law.

Prohibited conduct and enforcement

The bill authorizes a student athlete, in addition to an educational institution, to bring a civil action against an athlete agent for damages caused by a violation of the laws governing athlete agents. The bill specifies the conditions under which the civil action may be brought.

The bill prohibits an athlete agent from encouraging another person to engage in conduct the athlete agent is prohibited from doing by law. The bill also provides that any violation by an athlete agent of the laws governing athlete agents in Wisconsin constitutes an unfair method of competition and unfair trade practice, and the bill increases the maximum forfeiture amount for violations of the law by an athlete agent from $25,000 to $50,000.

Parent or guardian

The bill extends application of the laws governing athlete agents and their duties to and interactions with student athletes to the parent or guardian of a student athlete if the student athlete is a minor.

Because this bill creates a new crime or revises a penalty for an existing crime, the Joint Review Committee on Criminal Penalties may be requested to prepare a report.

For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB117,1 Section 1. 440.99 (2) of the statutes is repealed and recreated to read:

SB117,4,3 440.99 (2) (a) “Athlete agent” means an individual, whether or not registered under this act, who does any of the following:

SB117,5,4 1. Directly or indirectly recruits or solicits or, for compensation, procures employment or offers, promises, attempts, or negotiates to obtain employment for a student athlete as a professional athlete or member of a professional sports team or organization.

SB117,5,6 2. For compensation or in anticipation of compensation in connection with a student athlete's participation in athletics, does any of the following:

SB117,5,10 a. Serves the student athlete in an advisory capacity on a matter related to finances, business pursuits, or career management decisions, unless the individual is an employee of an educational institution acting exclusively as an employee of the educational institution for the benefit of the educational institution.

SB117,5,12 b. Manages the business affairs of the student athlete by providing assistance with bills, payments, contracts, or taxes.

SB117,5,14 3. In anticipation of representing a student athlete for a purpose related to the student athlete's participation in athletics, does any of the following:

SB117,5,15 a. Gives consideration to the student athlete or another person.

SB117,5,17 b. Serves the student athlete in an advisory capacity on a matter related to finances, business pursuits, or career management decisions.

SB117,5,19 c. Manages the business affairs of the student athlete by providing assistance with bills, payments, contracts, or taxes.

SB117,5,20 (b) “Athlete agent” does not include the following:

SB117,5,22 1. An individual who acts solely on behalf of a professional sports team or organization.

SB117,5,25 2. An individual who is a licensed, registered, or certified professional and offers or provides services to a student athlete customarily provided by members of the profession, unless the individual does any of the following:

SB117,6,1 a. Recruits or solicits.

SB117,6,4 b. For compensation, procures employment or offers, promises, attempts, or negotiates to obtain employment for the student athlete as a professional athlete or member of a professional sports team or organization.

SB117,6,7 c. Receives consideration for providing the services, and the consideration is calculated using a different method than for an individual who is not a student athlete.

SB117,2 Section 2. 440.99 (4) of the statutes is repealed.

SB117,3 Section 3. 440.99 (4r) of the statutes is created to read:

SB117,6,11 440.99 (4r) “Educational institution” includes all of the following, whether public or private:

SB117,6,12 (a) An elementary school.

SB117,6,13 (b) A secondary school.

SB117,6,14 (c) A technical or vocational school.

SB117,6,15 (d) A community college.

SB117,6,16 (e) A college.

SB117,6,17 (f) A university.

SB117,4 Section 4. 440.99 (5d) of the statutes is created to read:

SB117,6,20 440.99 (5d) “Enrolled” means registered for courses and attending athletic practice or class. “Enrolls” has a corresponding meaning.

SB117,5 Section 5. 440.99 (6) of the statutes is amended to read:

SB117,6,25 440.99 (6) “Intercollegiate sport" means a sport played at the collegiate level for which eligibility requirements for participation by a student athlete are established by a national association for the promotion or regulation of that promotes or regulates collegiate athletics.

SB117,6 Section 6. 440.99 (6c) of the statutes is created to read:

SB117,7,3 440.99 (6c) “Interscholastic sport” means a sport played between educational institutions that are not community colleges, colleges, or universities.

SB117,7 Section 7. 440.99 (6r) of the statutes is created to read: