2001 - 2002 LEGISLATURE
February 18, 2002 - Introduced by Representatives Wieckert, Jeskewitz, Musser,
Krawczyk, Olsen, Owens, Hahn, Shilling, Pettis and Albers, cosponsored by
Senators Grobschmidt, Huelsman and Risser. Referred to Committee on
1An Act to create
93.135 (1) (rp), 440.08 (2) (a) 14d. and subchapter XII of chapter 2
440 [precedes 440.99] of the statutes; relating to: regulating athlete agents,
3granting rule-making authority, making an appropriation, and providing
Analysis by the Legislative Reference Bureau
This bill regulates athlete agents who represent student athletes by enacting
the Uniform Athlete Agents Act, which was approved by the National Conference of
Commissioners on Uniform State Laws in 2000. With certain exceptions, the bill
defines an "athlete agent" as someone who does any of the following: 1) enters into
an agency contract with a student athlete; 2) recruits or solicits a student athlete to
enter into an agency contract; or 3) represents to the public that he or she is an
athlete agent. An "agency contract" is defined as any of the following: 1) an
agreement under which an athlete agent negotiates on behalf of a student athlete;
2) a professional-sports-services contract; or 3) an endorsement contract. A
"student athlete" is defined as an individual who engages in, is eligible to engage in,
or may be eligible in the future to engage in, any intercollegiate sport. However, if
an individual is permanently ineligible to participate in a particular intercollegiate
sport, the individual is not considered to be a student athlete for purposes of that
The bill prohibits an individual from acting as an athlete agent unless he or she
is registered with the department of regulation and licensing (DRL). The following
are excluded from the definition of "athlete agent" and do not have to register: 1) a
spouse, parent, sibling, grandparent, or guardian of a student athlete; 2) an
individual acting solely on behalf of a professional sports team or professional sports
organization; or 3) an individual who provides information to a student athlete, but
who does not recruit or solicit the student athlete to enter into an agency contract.
Also, except for signing an agency contract, an individual may act as an athlete agent
before being registered if a student athlete, or someone acting on behalf of the
student athlete, initiates communication with the individual and he or she applies
for registration within seven days after an initial act as an athlete agent. The bill
provides that, if an unregistered athlete agent who is required to be registered enters
into an agency contract with a student athlete, the contract is void and the athlete
agent must return any consideration received under the contract.
An applicant for registration must describe the applicant's training,
experience, and education and also identify his or her business associates. For a
business that is not a corporation, the applicant must identify the partners,
members, officers, managers, associates, or profit sharers of the business. For a
corporation, the officers, directors, and shareholders with an interest of 5% or more
must be identified. In addition, an applicant must describe all of the following: 1)
any felony for which the applicant or a business associate has been convicted; 2) any
administrative or judicial determination that the applicant or a business associate
has made a false, misleading, deceptive, or fraudulent representation; 3) any
instance in which the conduct of the applicant or a business associate has resulted
in a sanction, suspension, or declaration of ineligibility to participate in an
interscholastic or intercollegiate athletic event; and 4) any sanction, suspension, or
disciplinary action taken against the applicant or a business associate arising out of
occupational or professional misconduct.
An applicant must submit an application on a form prescribed by DRL.
However if the applicant is registered or licensed as an athlete agent in another
state, the applicant may, under certain circumstances, submit to DRL a copy of the
application to the other state.
DRL must register an applicant as an athlete agent, unless DRL determines
that the applicant has engaged in conduct that has a significant adverse effect on the
applicant's fitness as an athlete agent. In making this determination, DRL may
consider whether the applicant engaged in certain conduct, including the following:
1) conduct that would disqualify the applicant from serving in a fiduciary capacity;
2) conduct that significantly adversely reflects on the applicant's credibility, honesty,
or integrity; or 3) conduct that violates prohibitions specified in the bill that are
described below. An individual who is registered by DRL must apply to renew the
registration every two years and pay a renewal fee. An applicant for renewal may,
under certain circumstances, submit an application for renewal that was submitted
to another state. DRL may suspend, revoke, or refuse to renew a registration for
conduct that would have justified denial of the initial registration.
The bill imposes certain requirements on agency contracts between athlete
agents and student athletes. An agency contract must contain specified provisions,
including a notice to the student athlete that, by signing the contract, he or she may
lose his or her eligibility to compete as a student athlete. The bill gives a student
athlete the nonwaivable right to cancel an agency contract within 14 days after the
contract is signed. In addition, a student athlete may void an agency contract that
does not comply with the bill's requirements. Also, both the athlete agent and
student athlete must notify the student athlete's athletic director about an agency
contract within 72 hours after execution of the contract or before the next scheduled
athletic event in which the student athlete may participate, whichever occurs first.
The bill prohibits an athlete agent from engaging in the following conduct with
the intent to induce a student athlete to enter into an agency contract: 1) making
materially false promises or representations; or 2) furnishing anything of value to
the student athlete or any other individual, including another athlete agent. The bill
also prohibits an athlete agent from intentionally engaging in certain conduct,
including the following: 1) initiating contact with a student athlete unless the
athlete agent is registered under the bill; or 2) failing to notify a student athlete that
signing an agency contract may make him or her ineligible to participate in a sport
as a student athlete. In addition, the bill imposes record-keeping requirements on
An athlete agent who violates the bill's prohibitions may be fined $10,000 or
imprisoned for not more than 9 months or both. The bill also allows DRL to directly
assess a forfeiture of not more than $25,000 for a violation of the bill. In addition,
an educational institution may bring an action against an athlete agent or former
student athlete for damages caused by a violation of the bill.
For further information see the state and local 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:
AB829, s. 1
93.135 (1) (rp) of the statutes is created to read:
(rp) A registration as an athlete agent under subch. XII of ch. 440.
AB829, s. 2
440.08 (2) (a) 14d. of the statutes is created to read:
(a) 14d. Athlete agent: July 1 of each even-numbered year; $53.
AB829, s. 3
Subchapter XII of chapter 440 [precedes 440.99] of the statutes is 6
created to read:
Uniform athlete agents act
In this subchapter:
) "Agency contract" means an agreement in which a student athlete 2
authorizes a person to negotiate or solicit on behalf of the student athlete a 3
professional-sports-services contract or an endorsement contract.
) "Athlete agent" means an individual who enters into an agency contract 5
with a student athlete or recruits or solicits a student athlete to enter into an agency 6
contract. "Athlete agent" includes an individual who represents to the public that 7
the individual is an athlete agent. "Athlete agent" does not include a spouse, parent, 8
sibling, grandparent, or guardian of the student athlete or an individual acting solely 9
on behalf of a professional sports team or professional sports organization. "Athlete 10
agent" also does not include an individual who provides information to a student 11
athlete, but who does not recruit or solicit the student athlete to enter into an agency 12
) "Athletic director" means an individual responsible for administering the 14
overall athletic program of an educational institution or, if an educational institution 15
has separately administered athletic programs for male students and female 16
students, the athletic program for males or the athletic program for females, as 17
) "Contact" means a communication, direct or indirect, between an athlete 19
agent and a student athlete, to recruit or solicit the student athlete to enter into an 20
) "Endorsement contract" means an agreement under which a student 22
athlete is employed or receives consideration to use on behalf of the other party any 23
value that the student athlete may have because of publicity, reputation, following, 24
or fame obtained because of athletic ability or performance.
) "Intercollegiate sport" means a sport played at the collegiate level for which 2
eligibility requirements for participation by a student athlete are established by a 3
national association for the promotion or regulation of collegiate athletics.
) "Professional-sports-services contract" means an agreement under which 5
an individual is employed, or agrees to render services, as a player on a professional 6
sports team, with a professional sports organization, or as a professional athlete.
) "Record" means information that is inscribed on a tangible medium or that 8
is stored in an electronic or other medium and is retrievable in perceivable form.
) "Registration" means registration as an athlete agent under this 10
) "State" means a state of the United States, the District of Columbia, Puerto 12
Rico, the United States Virgin Islands, or any territory or insular possession subject 13
to the jurisdiction of the United States.
) "Student athlete" means an individual who engages in, is eligible to engage 15
in, or may be eligible in the future to engage in, any intercollegiate sport. If an 16
individual is permanently ineligible to participate in a particular intercollegiate 17
sport, the individual is not a student athlete for purposes of that sport.
18440.9905 Service of process.
By acting as an athlete agent in this state, a 19
nonresident individual appoints the secretary of state as the individual's agent for 20
service of process in any civil action in this state related to the individual's acting as 21
an athlete agent in this state.
22440.991 Athlete agents: registration required; void contracts. (1) 23
Except as otherwise provided in sub. (2), an individual may not act as an athlete 24
agent in this state without holding a certificate of registration under s. 440.992 or 25
Before being issued a certificate of registration, an individual may act as 2
an athlete agent in this state for all purposes except signing an agency contract, if 3
all of the following are satisfied:
(a) A student athlete or another person acting on behalf of the student athlete 5
initiates communication with the individual.
(b) Within 7 days after an initial act as an athlete agent, such as an effort to 7
recruit or solicit a student athlete to enter into an agency contract, the individual 8
submits an application for registration as an athlete agent in this state.
An agency contract resulting from conduct in violation of this section is void 10
and the athlete agent shall return any consideration received under the contract.
11440.9915 Registration as athlete agent; form; requirements. (1)
applicant for registration as an athlete agent shall submit an application for 13
registration to the department in a form prescribed by the department. The 14
application must be in the name of an individual and, except as otherwise provided 15
in sub. (2), signed or otherwise authenticated by the applicant under penalty of 16
perjury and state or contain all of the following:
(a) The name of the applicant and the address of the applicant's principal place 18
(b) The name of the applicant's business or employer, if applicable.
(c) Any business or occupation engaged in by the applicant for the 5 years next 21
preceding the date of submission of the application.
(d) A description of all of the following: