Plain language analysis:
This rule project updates the definitions sections of SPS 150 and 151 to incorporate the new definitions pertinent to athlete agents that were created by 2019 Wisconsin Acts 143 and 180. SPS 151 and 152 are revised to remove sections that are either obsolete or duplicative. The application content section and denial of issuance or renewal of certificate of registration sections, SPS 151.02, 151.05, and 152.04 are entirely duplicative of statutory requirements, therefore this rule project repeals them. SPS 151.03, 152.02, and 152.05 are repealed as obsolete in listing the credential fee amount, as this information is no longer generally provided in rule, but in a listing on the department’s website for each credential. SPS 151 is revised to better instruct applicants on the process and requirements to apply for an original certificate of registration, a reciprocal certificate generally, a reciprocal certificate for service members, former service members, and spouses under s. 440.09, as well as to incorporate instructions for renewing original or reciprocal certificates as had been previously included under SPS 152. SPS 153.01 to 153.07 are repealed as these requirements are all purely duplicative of statutory requirements. The remaining components of ch. SPS 153, SPS 153.08 to 153.10, are merged into ch. SPS 154 relating to unprofessional conduct. Additional provisions are created in ch. SPS 154 to reflect that unlicensed practice, assisting or allowing unlicensed practice, and violating the statutory requirements for contract components, etc. are considered unprofessional conduct. Summary of, and comparison with, existing or proposed federal regulation:
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.
Summary of public comments received on statement of scope and a description of how and to what extent those comments and feedback were taken into account in drafting the proposed rule: N/A.
Comparison with rules in adjacent states:
Illinois:
Illinois has repealed its athlete agent act and no longer requires or issues a credential for the athlete agent profession.
Iowa:
Iowa does not have administrative rules regulating athlete agents but adopts the UAAA in statute (IA Stats. § 9A.114).
Michigan:
Michigan does not have statutes or administrative rules specific to the regulation of athlete agents.
Minnesota:
Minnesota does not have administrative rules for the regulation of athlete agents but does adopt the RUAAA as Wisconsin does (MN Stats. § 81A).
Summary of factual data and analytical methodologies:
2019 Wisconsin Acts 143 and 180 require that the department update its rules relating to athlete agents to implement the statutory changes enacted by these acts. Analysis and supporting documents used to determine effect on small business or in preparation of economic impact analysis:
The rule draft was posted on the department’s website for 14 days in order to solicit comments from small businesses on potential economic impact.
Fiscal Estimate and Economic Impact Analysis:
The Fiscal Estimate and Economic Impact Analysis are attached.
Effect on small business:
No impact.
Agency contact person:
Jon Derenne, Administrative Rules Coordinator, Department of Safety and Professional Services, Division of Policy Development, 4822 Madison Yards Way, P.O. Box 8366, Madison, Wisconsin 53708; telephone 608-266-0955; email at DSPSAdminRules@wisconsin.gov. Place where comments are to be submitted and deadline for submission:
The public hearing on this rule was held on August 28, 2020.
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TEXT OF RULE
Section 1. SPS 150.02 is repealed and recreated to read:
SPS 150.02 Definitions; generally. As used in chs. SPS 150 to 154: (1) “Athlete agent” has the meaning given in s. 440.99 (2), Stats. (2) “Department” means the department of safety and professional services.
(3) “Educational institution” has the meaning given in s. 440.99 (4r), Stats. (4) “Registration” has the meaning given in s. 440.99 (9), Stats. (5) “State” has the meaning given in s. 440.99 (10), Stats. (6) “Student athlete” has the meaning given in s. 440.99 (11), Stats. Section 2. SPS 151.01 is repealed and recreated to read:
SPS 151.01 Definitions; this chapter. As used in this chapter:
(1) “Former service member” has the meaning provided in s. 440.09 (1) (a), Stats. (2) “Service member” has the meaning provided in s. 440.09 (1) (b), Stats. Section 3. SPS 151.02 is repealed and recreated to read:
