AN ACT Relating to athlete agents; amending RCW 19.225.010, 19.225.020, 19.225.030, 19.225.040, 19.225.050, 19.225.060, 19.225.070, 19.225.080, 19.225.090, 19.225.100, and 19.225.120; and adding a new section to chapter 19.225 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1.  RCW 19.225.010 and 2002 c 131 s 2 are each amended to read as follows:

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)(a) "Athlete agent" means an individual who ((enters into an agency contract with a student-athlete or,)):

(i) Directly or indirectly, recruits or solicits a student((-))athlete to enter into an agency contract 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;

(C) Receives consideration for providing the services calculated using a different method than for an individual who is not a student athlete. ((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)) the 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) "Educational institution" includes a public or private elementary school, secondary school, technical or vocational school, community college, college, and university.

(6) "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))) (7) "Enrolled" means registered for courses and attending athletic practice or class. "Enrolls" has a corresponding meaning.

(8) "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.

(((7))) (9) "Interscholastic sport" means a sport played between educational institutions that are not community colleges, colleges, or universities.

(11) "Person" means an individual, estate, business or nonprofit entity, public corporation, ((business trust, estate, trust, partnership, limited liability company, association, joint venture, or)) government((;)) or governmental subdivision, agency, or instrumentality((; public corporation;)), or any other legal or commercial entity.

(((8))) (12) "Professional-sports-services contract" means an agreement under which an individual is employed as a professional athlete or agrees to render services as a player on a professional sports team((,)) or with a professional sports organization((, or as a professional athlete)).

(((9))) (13) "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))) (14) "Recruit or solicit" means the attempt to influence the choice of an athlete agent by a student athlete or, if the athlete is a minor, a parent or guardian of the athlete. The term does not include giving advice on the selection of a particular athlete agent in a family, coaching, or social situation unless the individual giving the advice does so because of the receipt or anticipated receipt of an economic benefit, directly or indirectly, from the athlete agent.

(16) "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))) (17) "Student((-))athlete" means an individual who is eligible to attend an educational institution and engages in, is eligible to engage in, or may be eligible in the future to engage in, any interscholastic or intercollegiate sport. ((If)) The term does not include an individual ((is)) permanently ineligible to participate in a particular interscholastic or intercollegiate sport((, the individual is not a student-athlete)) for ((purposes of)) that sport.

Sec. 2.  RCW 19.225.020 and 2002 c 131 s 3 are each amended to read as follows:

By ((engaging in the business of)) acting as an athlete agent in this state, a nonresident individual appoints the secretary of state as the individual's agent ((to accept)) for service of process in any civil action in this state related to ((the individual's business)) acting as an athlete agent in this state.

Sec. 3.  RCW 19.225.030 and 2002 c 131 s 4 are each amended to read as follows:

(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 RCW 19.225.040.

(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 person acting on behalf of the ((student-))athlete initiates communication with the individual; and

(b) ((Within)) Not later than 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((.)), and the athlete agent shall return any consideration received under the contract.

Sec. 4.  RCW 19.225.040 and 2002 c 131 s 5 are each amended to read as follows:

(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 at least the following:

(a) The name of the athlete agent and the following contact information for the agent:

(i) The address of the athlete agent's principal place of business;

(b) The name of the athlete agent's business or employer, if applicable, including for each business or employer, its mailing address, telephone number, organization form, and nature of the business;

(c) ((Any)) Each social media account with which the athlete agent or the agent's business or employer is affiliated;

(d) Each business or occupation in which the athlete agent engaged ((in by the athlete agent for the)) within five years ((next preceding)) before the date of execution of the athlete agent disclosure form, including self-employment and employment by others, and any professional or occupational license, registration, or certification held by the agent during that time;

(((d))) (e) 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;

(f) The name((, sport, and last known team for each individual)) of each student athlete for whom the athlete agent ((provided services)) acted as an athlete agent ((during)) within the five years ((next preceding)) before the date of execution of the athlete agent disclosure form or, if the individual is a minor, the name of the parent or guardian of the minor, together with the athlete's sport and last-known team;

(g) The names and addresses of ((all persons who are)) each person that:

(i) ((With respect to the athlete agent's business if it is not a corporation, the partners, officers, associates, or profit-sharers)) Is a partner, member, officer, manager, associate, or profit sharer or directly or indirectly holds an equity interest of five percent or greater of the athlete agent's business if it is not a corporation; 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)) Is an officer or director of a corporation employing the athlete agent or a shareholder having an interest of five percent or greater in the corporation;

(h) A description of the status of any application by the athlete agent, or any person named under (g) of this subsection, for a state or federal business, professional, or occupational license, other than as an athlete agent, from a state or federal agency, including any denial, refusal to renew, suspension, withdrawal, or termination of the license and any reprimand or censure related to the license;

(i) Whether the athlete agent or any other person named pursuant to (g) of this subsection has pleaded guilty or no contest to, has been convicted of, or has charges pending for, a ((crime that, if committed in this state, would be a)) felony or other crime involving moral turpitude, and ((identify)), if so, identification of:

(i) The crime;

(((i))) (ii) The law enforcement agency involved; and

(m) Whether there has been any administrative or judicial determination that the athlete agent, or any other person named ((pursuant to)) under (g) of this subsection ((has)), made a false, misleading, deceptive, or fraudulent representation;

(((j) Any)) (n) Each instance in which the conduct of the athlete agent, or any other person named ((pursuant to)) under (g) of this subsection, resulted in the imposition of a sanction, suspension, or declaration of ineligibility to participate in an interscholastic ((or)), intercollegiate, or professional athletic event on a student((-))athlete or a sanction on an educational institution;

(((k) Any)) (o) Each sanction, suspension, or disciplinary action taken against the athlete agent, or any other person named ((pursuant to)) under (g) of this subsection, arising out of occupational or professional conduct; ((and

(l))) (p) Whether there has been ((any)) a denial of an application for, suspension or revocation of, ((or)) refusal to renew, or abandonment of, the registration ((or licensure)) of the athlete agent, or any other person named ((pursuant to)) under (g) of this subsection, as an athlete agent in any state;

(iii) If applicable, 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.

(2) Instead of delivering an athlete agent disclosure form pursuant to subsection (1) of this section, an individual who ((has submitted an application for, and received a certificate of or a renewal of a certificate of, registration)) is registered or ((licensure)) licensed 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:

(c) Was signed by the athlete agent under penalty of perjury.)) deliver:

Sec. 5.  RCW 19.225.050 and 2002 c 131 s 6 are each amended to read as follows:

No person may engage in the business of an athlete agent who has:

(1) Pleaded guilty or no contest to, has been convicted of, or has charges pending for, 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 RCW 19.225.100;

(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) Been refused renewal of registration as an athlete agent in any state; or

(6) Engaged in conduct ((or failed to engage in conduct the consequence of which was that)) resulting in imposition of a sanction, suspension, or declaration of ineligibility to participate in an interscholastic ((or)), intercollegiate, or professional athletic event ((was imposed)) on a student((-))athlete or a sanction on an educational institution.

Sec. 6.  RCW 19.225.060 and 2002 c 131 s 7 are each amended to read as follows:

(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) Subject to subsection (7) of this section, 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)) and in substantially the following form:

(4) ((A copy of the athlete agent disclosure form delivered to the student-athlete shall be attached to the agency contract.)) An agency contract must be accompanied by a separate record signed by the student athlete or, if the athlete is a minor, the parent or guardian of the athlete acknowledging that signing the contract may result in the loss of the athlete's eligibility to participate in the athlete's sport.

(5) ((An agency contract that does not conform to this section is voidable by the student-athlete.)) A student athlete or, if the athlete is a minor, the parent or guardian of the athlete may void an agency contract that does not conform to this section. If the contract is voided, any consideration received from the athlete agent under the contract to induce entering into the contract is not required to be returned.

(6) ((The athlete agent shall give a copy of the signed agency contract to the student-athlete at the time of signing.)) At the time an agency contract is executed, the athlete agent shall give the student athlete or, if the athlete is a minor, the parent or guardian of the athlete a copy in a record of the contract and the separate acknowledgment required in subsection (4) of this section.

Sec. 7.  RCW 19.225.070 and 2002 c 131 s 8 are each amended to read as follows:

(1) ((At least)) In this section, "communicating or attempting to communicate" means contacting or attempting to contact by an in-person meeting, a record, or any other method that conveys or attempts to convey a message.

(2) Not later than seventy-two hours prior to entering into an agency contract and again not later than 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 at which 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)) Not later than seventy-two hours prior to entering into an agency contract and again not later than 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 ((student-))athlete shall inform the athletic director of the educational institution at which the ((student-))athlete is enrolled that ((he or she)) the athlete has entered into an agency contract and ((shall provide a copy of the athlete agent disclosure form)) the name and contact information of the athlete agent.

Sec. 8.  RCW 19.225.080 and 2002 c 131 s 9 are each amended to read as follows:

(1) A student((-))athlete or, if the athlete is a minor, the parent or guardian of the athlete may cancel an agency contract by giving notice in a record of cancellation to the athlete agent ((of the cancellation within)) not later than fourteen days after the contract is signed.

(2) A student((-))athlete or, if the athlete is a minor, the parent or guardian of the athlete may not waive the right to cancel an agency contract.

(3) If a student((-))athlete, parent, or guardian cancels an agency contract, the ((student-))athlete, parent, or guardian is not required to pay any consideration under the contract or to return any consideration received from the athlete agent to ((induce)) influence the ((student-))athlete to enter into the contract.

Sec. 9.  RCW 19.225.090 and 2002 c 131 s 10 are each amended to read as follows:

(1) An athlete agent shall create and retain ((the following records)) for ((a period of)) five years records of the following:

(a) The name and address of each individual represented by the athlete agent;

(b) ((Any)) Each agency contract entered into by the athlete agent; and

(c) ((Any)) The direct costs incurred by the athlete agent in the recruitment or solicitation of ((a)) each student((-))athlete to enter into an agency contract.

(2) Records ((required by)) described in subsection (1) of this section ((to be retained)) are subject to subpoena in a judicial proceeding.

Sec. 10.  RCW 19.225.100 and 2002 c 131 s 11 are each amended to read as follows:

(1) An athlete agent, with the intent to influence a student athlete or, if the athlete is a minor, a parent or guardian of the athlete to enter into an agency contract, may not ((do)) take any of the following ((with the intent to induce a student-athlete to enter into an agency contract)) actions or encourage any other individual to take or assist any other individual in taking any of the following actions on behalf of the athlete agent:

(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)) the athlete before the ((student-))athlete enters into the ((agency)) contract; or

(c) Furnish anything of value to ((any)) an individual other than the ((student-))athlete or another registered athlete agent.

(2) An athlete agent may not intentionally do any of the following or encourage any other individual to do any of the following on behalf of the agent:

(a) Initiate contact, directly or indirectly, with a student((-))athlete or, if the athlete is a minor, a parent or guardian of the athlete, to recruit or solicit the athlete, parent, or guardian to enter an agency contract unless providing the ((student-))athlete with the athlete agent disclosure form as provided in RCW 19.225.030;

(b) Refuse or willfully fail to retain or produce in response to subpoena the records required by RCW 19.225.090;

(c) Fail to disclose information required by RCW 19.225.040;

(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)) or, if the athlete is a minor, a parent or guardian of the athlete, before the athlete, parent, or guardian signs 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 RCW 19.225.070; or

(i) Engage in the business of an athlete agent in this state: (A) At any time after conviction under RCW 19.225.110; or (B) within five years of entry of a civil judgment under RCW 19.225.120.

Sec. 11.  RCW 19.225.120 and 2002 c 131 s 13 are each amended to read as follows:

(1) An educational institution ((has a right of)) or student athlete may bring an action for damages against an athlete agent ((or a former student-athlete for damages caused by a)) if the institution or athlete is adversely affected by an act or omission of the agent in violation of this chapter. ((In an action under this section, the court may award to the prevailing party costs and reasonable attorneys' fees.

(5) This chapter does not restrict rights, remedies, or defenses of any person under law or equity.)) An educational institution or student athlete is adversely affected by an act or omission of the athlete agent only if, because of the act or omission, the institution or an individual who was a student athlete at the time of the act or omission and enrolled in the institution:

NEW SECTION.  Sec. 12.  A new section is added to chapter 19.225 RCW to read as follows:

This act modifies, limits, or supersedes the Electronic Signatures in Global and National Commerce Act, 15 U.S.C. Sec. 7001 et seq., but does not modify, limit, or supersede Section 101(c) of that act, 15 U.S.C. Sec. 7001(c), or authorize electronic delivery of any of the notices described in Section 103(b) of that act, 15 U.S.C. Sec. 7003(b).

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