AN
ACT Relating to athlete agents; adding a new chapter to Title 19 RCW; and
prescribing penalties.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW
SECTION. Sec. 1. SHORT
TITLE. This chapter may be cited as the Uniform Athlete
Agents Act.
NEW
SECTION. Sec. 2.
DEFINITIONS. In this chapter:
(1)
"Agency contract" means an agreement in which a student-athlete
authorizes a person to negotiate or solicit on behalf of the student-athlete a
professional-sports-services contract or an endorsement contract.
(2)
"Athlete agent" means an individual who enters into an agency
contract with a student-athlete or, directly or indirectly, recruits or
solicits a student-athlete to enter into an agency contract. The term does not
include a spouse, parent, sibling, grandparent, or legal guardian of the
student-athlete or an individual acting solely on behalf of a professional
sports team or professional sports organization. The term includes an
individual who represents to the public that the individual is an athlete
agent.
(3)
"Athletic director" means an individual responsible for administering
the overall athletic program of an educational institution or, if an
educational institution has separately administered athletic programs for male
students and female students, the athletic program for males or the athletic
program for females, as appropriate.
(4)
"Contact" means a communication, direct or indirect, between an
athlete agent and a student-athlete, to recruit or solicit the student-athlete
to enter into an agency contract.
(5)
"Endorsement contract" means an agreement under which a student-athlete
is employed or receives consideration to use on behalf of the other party any
value that the student-athlete may have because of publicity, reputation,
following, or fame obtained because of athletic ability or performance.
(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
collegiate athletics.
(7)
"Person" means an individual, corporation, business trust, estate,
trust, partnership, limited liability company, association, joint venture, or
government; governmental subdivision, agency, or instrumentality; public
corporation; or any other legal or commercial entity.
(8)
"Professional-sports-services contract" means an agreement under
which an individual is employed or agrees to render services as a player on a
professional sports team, with a professional sports organization, or as a
professional athlete.
(9)
"Record" means information that is inscribed on a tangible medium or
that is stored in an electronic or other medium and is retrievable in
perceivable form.
(10)
"State" means a state of the United States, the District of Columbia,
Puerto Rico, the United States Virgin Islands, or any territory or insular
possession subject to the jurisdiction of the United States.
(11)
"Student-athlete" means an individual who engages in, is eligible to
engage in, or may be eligible in the future to engage in, any intercollegiate
sport. If an individual is permanently ineligible to participate in a
particular intercollegiate sport, the individual is not a student-athlete for
purposes of that sport.
NEW
SECTION. Sec. 3.
SERVICE OF PROCESS. By engaging in the business of an athlete agent in this
state, a nonresident individual appoints the secretary of state as the
individual's agent to accept service of process in any civil action related to
the individual's business as an athlete agent in this state.
NEW
SECTION. Sec. 4.
ATHLETE AGENTS‑‑DELIVERY OF DISCLOSURE FORM REQUIRED. (1) Except
as otherwise provided in subsection (2) of this section, an individual may not
act as an athlete agent in this state unless on the day of initial contact with
any student-athlete the athlete agent delivers to the student-athlete the
athlete agent disclosure form as required by section 5 of this act.
(2)
An individual may act as an athlete agent before delivering an athlete agent
disclosure form for all purposes except signing an agency contract if:
(a)
A student-athlete or another acting on behalf of the student-athlete initiates
communication with the individual; and
(b)
Within seven days after an initial act as an athlete agent, the individual
delivers an athlete agent disclosure form to the student-athlete.
(3)
An agency contract resulting from conduct in violation of this section is
void. The athlete agent shall return any consideration received under the
contract.
NEW
SECTION. Sec. 5.
ATHLETE AGENT DISCLOSURE FORM‑‑ REQUIREMENTS. (1) The athlete
agent disclosure form must be in a record executed in the name of an individual
and signed by the athlete agent under penalty of perjury and, except as
otherwise provided in subsection (2) of this section, must state or contain:
(a)
The name of the athlete agent and the address of the athlete agent's principal
place of business;
(b)
The name of the athlete agent's business or employer, if applicable;
(c)
Any business or occupation engaged in by the athlete agent for the five years
next preceding the date of execution of the athlete agent disclosure form;
(d)
A description of the athlete agent's:
(i)
Formal training as an athlete agent;
(ii)
Practical experience as an athlete agent; and
(iii)
Educational background relating to the athlete agent's activities as an athlete
agent;
(e)
The names and addresses of three individuals not related to the athlete agent
who are willing to serve as references;
(f)
The name, sport, and last known team for each individual for whom the athlete
agent provided services as an athlete agent during the five years next
preceding the date of execution of the athlete agent disclosure form;
(g)
The names and addresses of all persons who are:
(i)
With respect to the athlete agent's business if it is not a corporation, the
partners, officers, associates, or profit-sharers; and
(ii)
With respect to a corporation employing the athlete agent, the officers,
directors, and any shareholder of the corporation with a five percent or
greater interest;
(h)
Whether the athlete agent or any other person named pursuant to (g) of this
subsection has been convicted of a crime that, if committed in this state,
would be a felony or other crime involving moral turpitude, and identify the
crime;
(i)
Whether there has been any administrative or judicial determination that the
athlete agent or any other person named pursuant to (g) of this subsection has
made a false, misleading, deceptive, or fraudulent representation;
(j)
Any instance in which the conduct of the athlete agent or any other person
named pursuant to (g) of this subsection resulted in the imposition of a
sanction, suspension, or declaration of ineligibility to participate in an
interscholastic or intercollegiate athletic event on a student-athlete or
educational institution;
(k)
Any sanction, suspension, or disciplinary action taken against the athlete
agent or any other person named pursuant to (g) of this subsection arising out
of occupational or professional conduct; and
(l)
Whether there has been any denial of an application for, suspension or
revocation of, or refusal to renew, the registration or licensure of the
athlete agent or any other person named pursuant to (g) of this subsection as
an athlete agent in any state.
(2)
An individual who has submitted an application for, and received a certificate
of or a renewal of a certificate of, registration or licensure as an athlete
agent in another state may submit a copy of the application and a valid certificate
of registration or licensure from the other state in lieu of submitting an
athlete agent disclosure form in the form prescribed pursuant to subsection (1)
of this section, but only if the application to the other state:
(a)
Was submitted in the other state within the six months next preceding the date
of delivery of the athlete agent disclosure form in this state and the athlete
agent certifies the information contained in the application is current;
(b)
Contains information substantially similar to or more comprehensive than that
required in an athlete agent disclosure form under subsection (1) of this
section; and
(c)
Was signed by the athlete agent under penalty of perjury.
NEW
SECTION. Sec. 6.
DISQUALIFICATIONS. No person may engage in the business of an athlete agent
who has:
(1)
Been convicted of a crime that, if committed in this state, would be a felony
or other crime involving moral turpitude;
(2)
Made a materially false, misleading, deceptive, or fraudulent representation as
an athlete agent or in the application for licensure or registration as an
athlete agent in another state;
(3)
Engaged in conduct prohibited by section 11 of this act;
(4)
Had a registration or licensure as an athlete agent suspended, revoked, or
denied or been refused renewal of registration or licensure in any state; or
(5)
Engaged in conduct or failed to engage in conduct the consequence of which was
that a sanction, suspension, or declaration of ineligibility to participate in
an interscholastic or intercollegiate athletic event was imposed on a
student-athlete or educational institution.
NEW
SECTION. Sec. 7. FORM
OF CONTRACT. (1) An agency contract must be in a record signed by the parties.
(2)
An agency contract must state or contain:
(a)
The amount and method of calculating the consideration to be paid by the
student-athlete for services to be provided by the athlete agent under the
contract and any other consideration the athlete agent has received or will
receive from any other source for entering into the contract or for providing
the services;
(b)
The name of any person other than the athlete agent who will be compensated
because the student athlete signed the agency contract;
(c)
A description of any expenses that the student-athlete agrees to reimburse;
(d)
A description of the services to be provided to the student-athlete;
(e)
The duration of the contract; and
(f)
The date of execution.
(3)
An agency contract must contain, in close proximity to the signature of the
student-athlete, a conspicuous notice in boldface type in capital letters
stating:
WARNING
TO STUDENT-ATHLETE
IF
YOU SIGN THIS CONTRACT:
(a)
YOU MAY LOSE YOUR ELIGIBILITY TO COMPETE AS A STUDENT-ATHLETE IN YOUR SPORT;
(b)
BOTH YOU AND YOUR ATHLETE AGENT ARE REQUIRED TO TELL YOUR ATHLETIC DIRECTOR, IF
YOU HAVE AN ATHLETIC DIRECTOR, AT LEAST SEVENTY-TWO HOURS PRIOR TO ENTERING
INTO AN AGENCY CONTRACT AND AGAIN WITHIN SEVENTY-TWO HOURS AFTER ENTERING INTO
AN AGENCY CONTRACT; AND
(c)
YOU MAY CANCEL THIS CONTRACT WITHIN FOURTEEN DAYS AFTER SIGNING IT.
CANCELLATION OF THE CONTRACT MAY NOT REINSTATE YOUR ELIGIBILITY.
(4)
A copy of the athlete agent disclosure form delivered to the student-athlete
shall be attached to the agency contract.
(5)
An agency contract that does not conform to this section is voidable by the
student-athlete.
(6)
The athlete agent shall give a copy of the signed agency contract to the
student-athlete at the time of signing.
NEW
SECTION. Sec. 8.
NOTICE TO EDUCATIONAL INSTITUTION. (1) At least seventy-two hours prior to
entering into an agency contract, the athlete agent shall give notice in a
record of the existence of the contract and shall provide a copy of the athlete
agent disclosure form to the athletic director of the educational institution
at which the student-athlete is enrolled or the athlete agent has reasonable
grounds to believe the student-athlete intends to enroll.
(2)
Within seventy-two hours after entering into an agency contract or before the
next scheduled athletic event in which the student-athlete may participate,
whichever occurs first, the athlete agent shall give notice in a record of the
existence of the contract and shall provide a copy of the athlete agent
disclosure form to the athletic director of the educational institution at
which the student-athlete is enrolled or the athlete agent has reasonable
grounds to believe the student-athlete intends to enroll.
(3)
At least seventy-two hours prior to entering into an agency contract, the
student-athlete shall give notice in a record of the existence of the contract
and shall provide a copy of the athlete agent disclosure form to the athletic
director of the educational institution at which the student-athlete is
enrolled.
(4)
Within seventy-two hours after entering into an agency contract or before the
next athletic event in which the student-athlete may participate, whichever
occurs first, the student-athlete shall inform the athletic director of the
educational institution at which the student-athlete is enrolled that he or she
has entered into an agency contract and shall provide a copy of the athlete
agent disclosure form.
NEW
SECTION. Sec. 9.
STUDENT-ATHLETE'S RIGHT TO CANCEL. (1) A student-athlete may cancel an agency
contract by giving notice in a record to the athlete agent of the cancellation
within fourteen days after the contract is signed.
(2)
A student-athlete may not waive the right to cancel an agency contract.
(3)
If a student-athlete cancels an agency contract, the student-athlete is not
required to pay any consideration under the contract or to return any
consideration received from the agent to induce the student-athlete to enter
into the contract.
NEW
SECTION. Sec. 10.
REQUIRED RECORDS. (1) An athlete agent shall retain the following records for
a period of five years:
(a)
The name and address of each individual represented by the athlete agent;
(b)
Any agency contract entered into by the athlete agent; and
(c)
Any direct costs incurred by the athlete agent in the recruitment or
solicitation of a student-athlete.
(2)
Records required by subsection (1) of this section to be retained are subject
to subpoena in a judicial proceeding.
NEW
SECTION. Sec. 11.
PROHIBITED ACTS. (1) An athlete agent may not do any of the following with the
intent to induce a student-athlete to enter into an agency contract:
(a)
Give any materially false or misleading information or make a materially false
promise or representation;
(b)
Furnish anything of value to a student-athlete before the student-athlete
enters into the agency contract; or
(c)
Furnish anything of value to any individual other than the student-athlete or
another registered athlete agent.
(2)
An athlete agent may not intentionally:
(a)
Initiate contact with a student-athlete unless providing the student-athlete
with the athlete agent disclosure form as provided in section 4 of this act;
(b)
Refuse or willfully fail to retain or produce in response to subpoena the
records required by section 10 of this act;
(c)
Fail to disclose information required by section 5 of this act;
(d)
Provide materially false or misleading information in an athlete agent
disclosure form;
(e)
Predate or postdate an agency contract;
(f)
Fail to notify a student-athlete prior to the student-athlete's signing an
agency contract for a particular sport that the signing by the student-athlete
may make the student-athlete ineligible to participate as a student-athlete in
that sport;
(g)
Ask or allow a student-athlete to waive or attempt to waive rights under this
chapter;
(h)
Fail to give notice required under section 8 of this act; or
(i)
Engage in the business of an athlete agent in this state: (A) At any time
after conviction under section 12 of this act; or (B) within five years of
entry of a civil judgment under section 13 of this act.
NEW
SECTION. Sec. 12.
CRIMINAL PENALTIES. The commission of any act prohibited by section 11 of this
act by an athlete agent is a class C felony punishable according to chapter
9A.20 RCW. In addition to any criminal penalties, the court may assess a civil
penalty of up to ten thousand dollars for a violation of section 11 of this
act.
NEW
SECTION. Sec. 13. CIVIL
REMEDIES. (1) An educational institution has a right of action against an
athlete agent or a former student-athlete for damages caused by a violation of
this chapter. In an action under this section, the court may award to the
prevailing party costs and reasonable attorneys' fees.
(2)
Damages of an educational institution under subsection (1) of this section
include losses and expenses incurred because, as a result of the activities of
an athlete agent or former student-athlete, the educational institution was
injured by a violation of this chapter or was penalized, disqualified, or
suspended from participation in athletics by a national association for the
promotion and regulation of athletics, by an athletic conference, or by
reasonable self-imposed disciplinary action taken to mitigate sanctions.
(3)
A right of action under this section does not accrue until the educational
institution discovers or by the exercise of reasonable diligence would have
discovered the violation by the athlete agent or former student-athlete.
(4)
Any liability of the athlete agent or the former student-athlete under this
section is several and not joint.
(5)
This chapter does not restrict rights, remedies, or defenses of any person
under law or equity.
NEW
SECTION. Sec. 14.
APPLICATION AND CONSTRUCTION. In applying and construing this uniform act,
consideration must be given to the need to promote uniformity of the law with
respect to its subject matter of this chapter among states that enact it.
NEW
SECTION. Sec. 15.
SEVERABILITY. If any provision of this act or its application to any person or
circumstance is held invalid, the remainder of the act or the application of
the provision to other persons or circumstances is not affected.
NEW
SECTION. Sec. 16.
CAPTIONS NOT LAW. Captions used in this chapter are not any part of the law.
NEW
SECTION. Sec. 17.
Sections 1 through 16 of this act constitute a new chapter in Title 19 RCW.
