SENATE BILL REPORT

SB 6225

BYSenators Fleming, Patterson, von Reichbauer, Gaspard, Conner, Halsan, Bender, Talmadge, Rasmussen, McMullen, Vognild and Garrett

Regulating athlete agents.

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):January 26, 1988; February 2, 1988

Majority Report:  That Substitute Senate Bill No. 6225 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Lee, Chairman; Anderson, Vice Chairman; Cantu, Conner, Deccio, McMullen, Saling, Smitherman, West.

Senate Staff:Paul Parker (786-7455)

                  February 2, 1988

AS REPORTED BY COMMITTEE ON ECONOMIC DEVELOPMENT & LABOR, FEBRUARY 2, 1988

BACKGROUND:

The activities of unscrupulous sports agents have resulted in grand jury investigations and the loss of some athlete's collegiate eligibility and amateur status.  When agents offer money and other things of value in an attempt to recruit an athlete as a client, both the student athlete and the university or college involved are affected.  Institutions may be required to forfeit games and may lose bowl proceeds or television money.  California, Oklahoma, Alabama, Texas and Louisiana have laws to regulate athlete agents.  Proposals are under consideration in several other states.

SUMMARY:

Agent recruiting of athletes before expiration of a student- athlete's eligibility is prohibited.  Athletes who are residents of this state and athletes not residents of this state who attend Washington public or private colleges and universities are included.

Agents are licensed by the Department of Licensing after paying licensing fees, providing a $25,000 bond, and passing an examination.  The examination tests the agents knowledge of agency law, contract law, legal and business ethics, and the principles of intercollegiate and interscholastic athletics.  Agents are also required to provide the Department a disclosure statement listing the educational, business and criminal history of the agent or individuals in agent firms.

Contracts agreed to between agents and athletes are filed with the Department of Licensing.  Agent disclosure statements are available at each institution.

Agents violating the act may be found guilty of a class C felony with fines up to $10,000 and five years in prison.  A student-athlete who accepts money or anything of value is guilty of a gross misdemeanor and subject to a fine of up to $5,000.  Athletes and agents violating the act may be required to make restitution to the athlete's college for damages.

EFFECT OF PROPOSED SUBSTITUTE:

The director's authority is clarified.  Immunity from suit is provided for the director and individuals acting on her behalf.

License fees and the amount of surety bond required are set by rule.  Procedures are set forth for actions on the surety bond.

Licensees are permitted to go on inactive status.  Licensee disclosure statements are available for inspection and copying, but are not required to be distributed to institutions of higher education.

The licensing provisions take effect July 1, 1989.

Appropriation:    none

Revenue:    yes

Fiscal Note:      requested January 21, 1988

Senate Committee - Testified: Senator Fleming; Professor Steve Goldblatt, University of Washington (pro); Mike Lude, Director of Intercollegiate Athletics, University of Washington (pro)