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Minnesota Legislature

Office of the Revisor of Statutes

HF 2363

1st Engrossment - 90th Legislature (2017 - 2018) Posted on 06/01/2018 03:17pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to commerce; enacting and modifying the Revised Uniform Athlete Agents
Act;amending Minnesota Statutes 2016, section 45.011, subdivision 1; proposing
coding for new law in Minnesota Statutes, chapter 81A; repealing Minnesota
Statutes 2016, sections 81A.01; 81A.02; 81A.04; 81A.05; 81A.06; 81A.07; 81A.10;
81A.11; 81A.12; 81A.13; 81A.14; 81A.19; 81A.20; 81A.21.

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

ARTICLE 1

REVISED UNIFORM ATHLETE AGENTS ACT

Section 1.

new text begin [81A.22] SHORT TITLE.
new text end

new text begin Sections 81A.22 to 81A.37 may be cited as the "Revised Uniform Athlete Agents Act."
new text end

Sec. 2.

new text begin [81A.23] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin For the purposes of sections 81A.22 to 81A.37, the terms defined
in this section have the meanings given them.
new text end

new text begin Subd. 2. new text end

new text begin Agency contract. new text end

new text begin "Agency contract" means an agreement in which a student
athlete authorizes a person to negotiate or solicit on behalf of the athlete a professional
sports services contract or endorsement contract.
new text end

new text begin Subd. 3. new text end

new text begin Athlete agent. new text end

new text begin (a) "Athlete agent" means an individual, whether or not registered
under sections 81A.22 to 81A.37, who:
new text end

new text begin (1) 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;
new text end

new text begin (2) for compensation or in anticipation of compensation related to a student athlete's
participation in athletics:
new text end

new text begin (i) serves the athlete in an advisory capacity on a matter related to finances, business
pursuits, or career management decisions, unless the individual is an employee of an
educational institution acting exclusively as an employee of the institution for the benefit
of the institution; or
new text end

new text begin (ii) manages the business affairs of the athlete by providing assistance with bills,
payments, contracts, or taxes; or
new text end

new text begin (3) in anticipation of representing a student athlete for a purpose related to the athlete's
participation in athletics:
new text end

new text begin (i) gives consideration to the student athlete or another person;
new text end

new text begin (ii) serves the athlete in an advisory capacity on a matter related to finances, business
pursuits, or career management decisions; or
new text end

new text begin (iii) manages the business affairs of the athlete by providing assistance with bills,
payments, contracts, or taxes.
new text end

new text begin (b) The term does not include an individual who:
new text end

new text begin (1) acts solely on behalf of a professional sports team or organization; or
new text end

new text begin (2) is a licensed, registered, or certified professional and offers or provides services to
a student athlete customarily provided by members of the profession, unless the individual:
new text end

new text begin (i) also recruits or solicits the athlete to enter into an agency contract;
new text end

new text begin (ii) also, for compensation, procures employment or offers, promises, attempts, or
negotiates to obtain employment for the athlete as a professional athlete or member of a
professional sports team or organization; or
new text end

new text begin (iii) receives consideration for providing the services calculated using a different method
than for an individual who is not a student athlete.
new text end

new text begin Subd. 4. new text end

new text begin Athletic director. new text end

new text begin "Athletic director" means 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.
new text end

new text begin Subd. 5. new text end

new text begin Commissioner. new text end

new text begin "Commissioner" means the commissioner of commerce.
new text end

new text begin Subd. 6. new text end

new text begin Educational institution. new text end

new text begin "Educational institution" includes a public or private
elementary school, secondary school, technical or vocational school, community college,
college, and university.
new text end

new text begin Subd. 7. new text end

new text begin Endorsement contract. new text end

new text begin "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 athlete may have because of publicity, reputation, following, or
fame obtained because of athletic ability or performance.
new text end

new text begin Subd. 8. new text end

new text begin Enrolled or enrolls. new text end

new text begin "Enrolled" or "enrolls" means registered for courses and
attending athletic practice or class.
new text end

new text begin Subd. 9. new text end

new text begin Intercollegiate sport. new text end

new text begin "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 that promotes or regulates collegiate athletics.
new text end

new text begin Subd. 10. new text end

new text begin Interscholastic sport. new text end

new text begin "Interscholastic sport" means a sport played between
educational institutions that are not community colleges, colleges, or universities.
new text end

new text begin Subd. 11. new text end

new text begin Licensed, registered, or certified professional. new text end

new text begin "Licensed, registered, or
certified professional" means an individual licensed, registered, or certified as an attorney,
dealer in securities, financial planner, insurance agent, real estate broker or sales agent, tax
consultant, accountant, or member of a profession, other than that of athlete agent, who is
licensed, registered, or certified by the state or a nationally recognized organization that
licenses, registers, or certifies members of the profession on the basis of experience,
education, or testing.
new text end

new text begin Subd. 12. new text end

new text begin Person. new text end

new text begin "Person" means an individual, estate, business or nonprofit entity,
public corporation, government or governmental subdivision, agency, or instrumentality,
or other legal entity.
new text end

new text begin Subd. 13. new text end

new text begin Professional sports services contract. new text end

new text begin "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.
new text end

new text begin Subd. 14. new text end

new text begin Record. new text end

new text begin "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.
new text end

new text begin Subd. 15. new text end

new text begin Recruit or solicit. new text end

new text begin "Recruit or solicit" means 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 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 agent.
new text end

new text begin Subd. 16. new text end

new text begin Registration. new text end

new text begin "Registration" means registration as an athlete agent under
sections 81A.22 to 81A.37.
new text end

new text begin Subd. 17. new text end

new text begin Sign. new text end

new text begin "Sign" means, with present intent to authenticate or adopt a record:
new text end

new text begin (1) to execute or adopt a tangible symbol; or
new text end

new text begin (2) to attach to or logically associate with the record an electronic symbol, sound, or
process.
new text end

new text begin Subd. 18. new text end

new text begin State. new text end

new text begin "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.
new text end

new text begin Subd. 19. new text end

new text begin Student athlete. new text end

new text begin "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. The term does not
include an individual permanently ineligible to participate in a particular interscholastic or
intercollegiate sport for that sport.
new text end

Sec. 3.

new text begin [81A.25] CERTIFICATE OF REGISTRATION REQUIRED.
new text end

new text begin Subdivision 1. new text end

new text begin Required. new text end

new text begin Except as otherwise provided in subdivision 2, an individual
may not act as an athlete agent in this state without holding a certificate of registration under
section 81A.27.
new text end

new text begin Subd. 2. new text end

new text begin Exceptions. new text end

new text begin Before being issued a certificate of registration under section
81A.27, an individual may act as an athlete agent in this state for all purposes, except signing
an agency contract, if:
new text end

new text begin (1) a student athlete or another person acting on behalf of the athlete initiates
communication with the individual; and
new text end

new text begin (2) not later than seven days after an initial act that requires the individual to register as
an athlete agent, the individual submits an application for registration as an athlete agent in
this state.
new text end

new text begin Subd. 3. new text end

new text begin Nonregistration; effect on agency contract. new text end

new text begin 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.
new text end

Sec. 4.

new text begin [81A.26] REGISTRATION APPLICATION.
new text end

new text begin Subdivision 1. new text end

new text begin Form and content. new text end

new text begin An applicant for registration as an athlete agent shall
submit an application for registration to the commissioner in a form prescribed by the
commissioner. The applicant must be an individual, and the application must be signed by
the applicant under penalty of perjury. The application must contain at least the following:
new text end

new text begin (1) the name and date and place of birth of the applicant and the following contact
information for the applicant:
new text end

new text begin (i) the address of the applicant's principal place of business;
new text end

new text begin (ii) work and mobile telephone numbers; and
new text end

new text begin (iii) any means of communicating electronically, including a facsimile number, electronic
mail address, and personal and business or employer Web sites;
new text end

new text begin (2) the name of the applicant's business or employer, if applicable, including for each
business or employer, its mailing address, telephone number, organization form, and the
nature of the business;
new text end

new text begin (3) each social media account with which the applicant or the applicant's business or
employer is affiliated;
new text end

new text begin (4) each business or occupation in which the applicant engaged within five years before
the date of the application, including self-employment and employment by others, and any
professional or occupational license, registration, or certification held by the applicant during
that time;
new text end

new text begin (5) a description of the applicant's:
new text end

new text begin (i) formal training as an athlete agent;
new text end

new text begin (ii) practical experience as an athlete agent; and
new text end

new text begin (iii) educational background relating to the applicant's activities as an athlete agent;
new text end

new text begin (6) the name of each student athlete for whom the applicant acted as an athlete agent
within five years before the date of the application 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;
new text end

new text begin (7) the name and address of each person that:
new text end

new text begin (i) 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
new text end

new text begin (ii) 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;
new text end

new text begin (8) a description of the status of any application by the applicant, or any person named
under clause (7), 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;
new text end

new text begin (9) whether the applicant, or any person named under clause (7), has pleaded guilty or
no contest to, has been convicted of, or has charges pending for, a crime that would involve
moral turpitude or be a felony if committed in this state and, if so, identification of:
new text end

new text begin (i) the crime;
new text end

new text begin (ii) the law enforcement agency involved; and
new text end

new text begin (iii) if applicable, the date of the conviction and the fine or penalty imposed;
new text end

new text begin (10) whether, within 15 years before the date of application, the applicant, or any person
named under clause (7), has been a defendant or respondent in a civil proceeding, including
a proceeding seeking an adjudication of legal incompetence and, if so, the date and a full
explanation of each proceeding;
new text end

new text begin (11) whether the applicant, or any person named under clause (7), has an unsatisfied
judgment or a judgment of continuing effect, including spousal maintenance or a domestic
order in the nature of child support, which is not current at the date of the application;
new text end

new text begin (12) whether, within ten years before the date of application, the applicant, or any person
named under clause (7), was adjudicated bankrupt or was an owner of a business that was
adjudicated bankrupt;
new text end

new text begin (13) whether there has been any administrative or judicial determination that the applicant,
or any person named under clause (7), made a false, misleading, deceptive, or fraudulent
representation;
new text end

new text begin (14) each instance in which conduct of the applicant, or any person named under clause
(7), resulted in the imposition of a sanction, suspension, or declaration of ineligibility to
participate in an interscholastic, intercollegiate, or professional athletic event on a student
athlete or a sanction on an educational institution;
new text end

new text begin (15) each sanction, suspension, or disciplinary action taken against the applicant, or any
person named under clause (7), arising out of occupational or professional conduct;
new text end

new text begin (16) whether there has been a denial of an application for, suspension or revocation of,
refusal to renew, or abandonment of, the registration of the applicant, or any person named
under clause (7), as an athlete agent in any state;
new text end

new text begin (17) each state in which the applicant currently is registered as an athlete agent or has
applied to be registered as an athlete agent;
new text end

new text begin (18) if the applicant is certified or registered by a professional league or players
association:
new text end

new text begin (i) the name of the league or association;
new text end

new text begin (ii) the date of certification or registration and the date of expiration of the certification
or registration, if any; and
new text end

new text begin (iii) if applicable, the date of a 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; and
new text end

new text begin (19) any additional information required by the commissioner.
new text end

new text begin Subd. 2. new text end

new text begin Reciprocal registration. new text end

new text begin (a) Instead of proceeding under subdivision 1, an
individual registered as an athlete agent in another state may apply for registration as an
athlete agent in this state by submitting to the commissioner:
new text end

new text begin (1) a copy of the application for registration in the other state;
new text end

new text begin (2) a statement that identifies any material change in the information on the application
or verifies there is no material change in the information, signed under penalty of perjury;
and
new text end

new text begin (3) a copy of the certificate of registration from the other state.
new text end

new text begin (b) The commissioner shall issue a certificate of registration to an individual who applies
for registration under this subdivision if the commissioner determines:
new text end

new text begin (1) the application and registration requirements of the other state are substantially
similar to or more restrictive than sections 81A.22 to 81A.37; and
new text end

new text begin (2) the registration has not been revoked or suspended and no action involving the
individual's conduct as an athlete agent is pending against the individual or the individual's
registration in any state.
new text end

new text begin (c) For purposes of implementing paragraph (b), the commissioner shall:
new text end

new text begin (1) cooperate with national organizations concerned with athlete agent issues and agencies
in other states that register athlete agents to develop a common registration form and
determine which states have laws that are substantially similar to or more restrictive than
sections 81A.22 to 81A.37; and
new text end

new text begin (2) exchange information, including information related to actions taken against registered
athlete agents or their registrations, with those organizations and agencies.
new text end

Sec. 5.

new text begin [81A.27] REGISTRATION ISSUANCE AND RENEWAL.
new text end

new text begin Subdivision 1. new text end

new text begin Issuance. new text end

new text begin Except as otherwise provided in subdivision 2, the commissioner
shall issue a certificate of registration to an applicant for registration who complies with
section 81A.26, subdivision 1.
new text end

new text begin Subd. 2. new text end

new text begin Refusal to issue. new text end

new text begin (a) The commissioner may refuse to issue a certificate of
registration to an applicant for registration under section 81A.26, subdivision 1, if the
commissioner determines that the applicant has engaged in conduct that significantly
adversely reflects on the applicant's fitness to act as an athlete agent. In making the
determination, the commissioner may consider whether the applicant has:
new text end

new text begin (1) pleaded guilty or no contest to, has been convicted of, or has charges pending for, a
crime that would involve moral turpitude or be a felony if committed in this state;
new text end

new text begin (2) made a materially false, misleading, deceptive, or fraudulent representation in the
application or as an athlete agent;
new text end

new text begin (3) engaged in conduct that would disqualify the applicant from serving in a fiduciary
capacity;
new text end

new text begin (4) engaged in conduct prohibited by section 81A.35;
new text end

new text begin (5) had a registration as an athlete agent suspended, revoked, or denied in any state;
new text end

new text begin (6) been refused renewal of registration as an athlete agent in any state;
new text end

new text begin (7) engaged in conduct resulting in imposition of a sanction, suspension, or declaration
of ineligibility to participate in an interscholastic, intercollegiate, or professional athletic
event on a student athlete or a sanction on an educational institution; or
new text end

new text begin (8) engaged in conduct that adversely reflects on the applicant's credibility, honesty, or
integrity.
new text end

new text begin (b) In making a determination under paragraph (a), the commissioner shall consider:
new text end

new text begin (1) how recently the conduct occurred;
new text end

new text begin (2) the nature of the conduct and the context in which it occurred; and
new text end

new text begin (3) other relevant conduct of the applicant.
new text end

new text begin Subd. 3. new text end

new text begin Renewal. new text end

new text begin (a) An athlete agent registered under subdivision 1 may apply to
renew the registration by submitting an application for renewal in a form prescribed by the
commissioner. The applicant shall sign the application for renewal under penalty of perjury
and include current information on all matters required in an original application for
registration.
new text end

new text begin (b) An athlete agent registered under section 81A.26, subdivision 2, may renew the
registration by proceeding under paragraph (a) or, if the registration in the other state has
been renewed, by submitting to the commissioner copies of the application for renewal in
the other state and the renewed registration from the other state. The commissioner shall
renew the registration if the commissioner determines:
new text end

new text begin (1) the registration requirements of the other state are substantially similar to or more
restrictive than sections 81A.22 to 81A.37; and
new text end

new text begin (2) the renewed registration has not been suspended or revoked and no action involving
the individual's conduct as an athlete agent is pending against the individual or the individual's
registration in any state.
new text end

new text begin Subd. 4. new text end

new text begin Term. new text end

new text begin A certificate of registration or renewal of registration under sections
81A.22 to 81A.37 is valid for two years.
new text end

Sec. 6.

new text begin [81A.28] SUSPENSION, REVOCATION, OR REFUSAL TO RENEW
REGISTRATION.
new text end

new text begin (a) The commissioner may limit, suspend, revoke, or refuse to renew a registration of
an individual registered under section 81A.27, subdivision 1, for conduct that would have
justified refusal to issue a certificate of registration under section 81A.27, subdivision 2.
new text end

new text begin (b) The commissioner may suspend or revoke the registration of an individual registered
under section 81A.26, subdivision 2, paragraph (b), or renewed under section 81A.27,
subdivision 3, paragraph (b), for any reason for which the commissioner could have refused
to grant or renew registration or for conduct that would justify refusal to issue a certificate
of registration under section 81A.27, subdivision 2.
new text end

Sec. 7.

new text begin [81A.29] TEMPORARY REGISTRATION.
new text end

new text begin The commissioner may issue a temporary certificate of registration as an athlete agent
while an application for registration or renewal of registration is pending.
new text end

Sec. 8.

new text begin [81A.31] AGENCY CONTRACT.
new text end

new text begin Subdivision 1. new text end

new text begin Form. new text end

new text begin An agency contract must be in a record signed by the parties.
new text end

new text begin Subd. 2. new text end

new text begin Content. new text end

new text begin An agency contract must contain:
new text end

new text begin (1) a statement that the athlete agent is registered as an athlete agent in this state and a
list of any other states in which the agent is registered as an athlete agent;
new text end

new text begin (2) the amount and method of calculating the consideration to be paid by the student
athlete for services to be provided by the agent under the contract and any other consideration
the agent has received or will receive from any other source for entering into the contract
or providing the services;
new text end

new text begin (3) the name of any person not listed in the agent's application for registration or renewal
of registration that will be compensated because the athlete signed the contract;
new text end

new text begin (4) a description of any expenses the athlete agrees to reimburse;
new text end

new text begin (5) a description of the services to be provided to the athlete;
new text end

new text begin (6) the duration of the contract; and
new text end

new text begin (7) the date of execution.
new text end

new text begin Subd. 3. new text end

new text begin Warning and cancellation right. new text end

new text begin Subject to subdivision 5, an agency contract
must contain a conspicuous notice in boldface type and in substantially the following form:
new text end

new text begin WARNING TO STUDENT ATHLETE
new text end

new text begin IF YOU SIGN THIS CONTRACT:
new text end

new text begin (1) YOU MAY LOSE YOUR ELIGIBILITY TO COMPETE AS A STUDENT
ATHLETE IN YOUR SPORT;
new text end

new text begin (2) IF YOU HAVE AN ATHLETIC DIRECTOR, WITHIN 72 HOURS AFTER
SIGNING THIS CONTRACT OR BEFORE THE NEXT SCHEDULED ATHLETIC
EVENT IN WHICH YOU PARTICIPATE, WHICHEVER OCCURS FIRST, BOTH
YOU AND YOUR ATHLETE AGENT MUST NOTIFY YOUR ATHLETIC
DIRECTOR THAT YOU HAVE ENTERED INTO THIS CONTRACT AND
PROVIDE THE NAME AND CONTACT INFORMATION OF THE ATHLETE
AGENT; AND
new text end

new text begin (3) YOU MAY CANCEL THIS CONTRACT WITHIN 14 DAYS AFTER SIGNING
IT. CANCELLATION OF THIS CONTRACT MAY NOT REINSTATE YOUR
ELIGIBILITY AS A STUDENT ATHLETE IN YOUR SPORT.
new text end

new text begin Subd. 4. new text end

new text begin Separate acknowledgment. new text end

new text begin 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.
new text end

new text begin Subd. 5. new text end

new text begin Nonconforming contract; voidability. new text end

new text begin 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.
new text end

new text begin Subd. 6. new text end

new text begin Special requirements applicable to a contract with a minor. new text end

new text begin If a student
athlete is a minor, an agency contract must be signed by the parent or guardian of the minor
and the notice required by subdivision 3 must be revised accordingly. 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 by subdivision 4.
new text end

Sec. 9.

new text begin [81A.32] REQUIRED NOTICES.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin 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.
new text end

new text begin Subd. 2. new text end

new text begin Athlete agent notice. new text end

new text begin (a) Not later than 72 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 to the athletic director of the educational institution at which the
athlete is enrolled or at which the agent has reasonable grounds to believe the athlete intends
to enroll.
new text end

new text begin (b) If an athlete agent enters into an agency contract with a student athlete and the athlete
subsequently enrolls at an educational institution, the agent shall notify the athletic director
of the institution of the existence of the contract not later than 72 hours after the agent knew
or should have known the athlete enrolled.
new text end

new text begin (c) If an athlete agent has a relationship with a student athlete before the athlete enrolls
in an educational institution and receives an athletic scholarship from the institution, the
agent shall notify the institution of the relationship not later than ten days after the enrollment
if the agent knows or should have known of the enrollment and:
new text end

new text begin (1) the relationship was motivated in whole or part by the intention of the agent to recruit
or solicit the athlete to enter an agency contract in the future; or
new text end

new text begin (2) the agent directly or indirectly recruited or solicited the athlete to enter an agency
contract before the enrollment.
new text end

new text begin (d) An athlete agent shall give notice in a record to the athletic director of any educational
institution at which a student athlete is enrolled before the agent communicates or attempts
to communicate with:
new text end

new text begin (1) the athlete or, if the athlete is a minor, a parent or guardian of the athlete, to influence
the athlete or parent or guardian to enter into an agency contract; or
new text end

new text begin (2) another individual to have that individual influence the athlete or, if the athlete is a
minor, the parent or guardian of the athlete to enter into an agency contract.
new text end

new text begin (e) If a communication or attempt to communicate with an athlete agent is initiated by
a student athlete or another individual on behalf of the athlete, the agent shall notify in a
record the athletic director of any educational institution at which the athlete is enrolled.
The notification must be made not later than ten days after the communication or attempt.
new text end

new text begin Subd. 3. new text end

new text begin Student athlete notice. new text end

new text begin Not later than 72 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 shall inform the athletic director of the
educational institution at which the athlete is enrolled that the athlete has entered into an
agency contract and the name and contact information of the athlete agent.
new text end

new text begin Subd. 4. new text end

new text begin Educational institution notice. new text end

new text begin An educational institution that becomes aware
of a violation of sections 81A.22 to 81A.37 by an athlete agent shall notify the commissioner
and any professional league or players association with which the institution is aware the
agent is licensed or registered of the violation.
new text end

Sec. 10.

new text begin [81A.33] STUDENT ATHLETE'S RIGHT TO CANCEL.
new text end

new text begin Subdivision 1. new text end

new text begin Requirement. new text end

new text begin 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 not later than 14 days after the contract is signed.
new text end

new text begin Subd. 2. new text end

new text begin Nonwaivability. new text end

new text begin 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.
new text end

new text begin Subd. 3. new text end

new text begin Consideration. new text end

new text begin If a student athlete, parent, or guardian cancels an agency
contract, the athlete, parent, or guardian is not required to pay any consideration under the
contract or return any consideration received from the athlete agent to influence the athlete
to enter into the contract.
new text end

Sec. 11.

new text begin [81A.34] REQUIRED RECORDS.
new text end

new text begin Subdivision 1. new text end

new text begin Retention; specification. new text end

new text begin An athlete agent shall create and retain for five
years records of the following:
new text end

new text begin (1) the name and address of each individual represented by the agent;
new text end

new text begin (2) each agency contract entered into by the agent; and
new text end

new text begin (3) the direct costs incurred by the agent in the recruitment or solicitation of each student
athlete to enter into an agency contract.
new text end

new text begin Subd. 2. new text end

new text begin Inspection. new text end

new text begin Records described in subdivision 1 are open to inspection by the
commissioner during normal business hours.
new text end

Sec. 12.

new text begin [81A.35] PROHIBITED CONDUCT.
new text end

new text begin Subdivision 1. new text end

new text begin Conduct intended to induce student athlete to contract. new text end

new text begin 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 take any of the following
actions or encourage any other individual to take or assist any other individual in taking
any of the following actions on behalf of the agent:
new text end

new text begin (1) give materially false or misleading information or make a materially false promise
or representation;
new text end

new text begin (2) furnish anything of value to the athlete before the athlete enters into the contract; or
new text end

new text begin (3) furnish anything of value to an individual other than the athlete or another registered
athlete agent.
new text end

new text begin Subd. 2. new text end

new text begin Other intentional conduct. new text end

new text begin 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:
new text end

new text begin (1) 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 registered under sections 81A.22 to 81A.37;
new text end

new text begin (2) fail to create or retain or to permit inspection of the records required by section
81A.34;
new text end

new text begin (3) fail to register when required by section 81A.25;
new text end

new text begin (4) provide materially false or misleading information in an application for registration
or renewal of registration;
new text end

new text begin (5) predate or postdate an agency contract; or
new text end

new text begin (6) fail to notify a student athlete 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 may make the athlete ineligible to participate as a student athlete in that
sport.
new text end

new text begin Subd. 3. new text end

new text begin Misconduct of athlete agents. new text end

new text begin An athlete agent must not violate section
325E.33.
new text end

Sec. 13.

new text begin [81A.37] RELATION TO ELECTRONIC SIGNATURES IN GLOBAL AND
NATIONAL COMMERCE ACT.
new text end

new text begin Sections 81A.22 to 81A.37 modify, limit, or supersede the Electronic Signatures in
Global and National Commerce Act, United States Code, title 15, section 7001 et seq., but
do not modify, limit, or supersede section 101(c) of that act, United States Code, title 15,
section 7001(c), or authorize electronic delivery of any of the notices described in section
103(b) of that act, United States Code, title 15, section 7003(b).
new text end

Sec. 14. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, sections 81A.01; 81A.02; 81A.04; 81A.05; 81A.06; 81A.07;
81A.10; 81A.11; 81A.12; 81A.13; 81A.14; 81A.19; 81A.20; and 81A.21,
new text end new text begin are repealed.
new text end

Sec. 15. new text beginEFFECTIVE DATE.
new text end

new text begin This act is effective August 1, 2018.
new text end

ARTICLE 2

CONFORMING CHANGES

Section 1.

Minnesota Statutes 2016, section 45.011, subdivision 1, is amended to read:


Subdivision 1.

Scope.

As used in chapters 45 to 80C, 80E to 83, 155A, 332, 332A, 332B,
345, and 359, and sections new text begin81A.22 to 81A.37; new text end123A.21, subdivision 7, paragraph (a), clause
(23); 123A.25; 325D.30 to 325D.42; 326B.802 to 326B.885; 386.62 to 386.78; 471.617;
and 471.982, unless the context indicates otherwise, the terms defined in this section have
the meanings given them.

Sec. 2. new text beginREVISOR'S INSTRUCTION.
new text end

new text begin The revisor of statutes shall renumber the sections of Minnesota Statutes listed in column
A to the sections listed in column B. The revisor shall make necessary cross-reference
changes in Minnesota Statutes consistent with the renumbering.
new text end

new text begin Column A
new text end
new text begin Column B
new text end
new text begin 81A.03
new text end
new text begin 81A.24
new text end
new text begin 81A.09
new text end
new text begin 81A.30
new text end
new text begin 81A.15
new text end
new text begin 81A.36
new text end
new text begin 81A.16
new text end
new text begin 81A.361
new text end
new text begin 81A.17
new text end
new text begin 81A.362
new text end

APPENDIX

Repealed Minnesota Statutes: H2363-1

81A.01 SHORT TITLE.

Sections 81A.01 to 81A.21 may be cited as the Uniform Athlete Agents Act.

81A.02 DEFINITIONS.

Subdivision 1.

Terms.

For purposes of sections 81A.01 to 81A.21, the terms defined in this section have the meanings given them.

Subd. 2.

Agency contract.

"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.

Subd. 3.

Athlete agent.

"Athlete agent" means an individual who enters into an agency contract with a student athlete or, directly or indirectly for remuneration, recruits or solicits a student athlete to enter into an agency contract. The term includes an individual who represents to the public that the individual is an athlete agent. The term does not include a spouse, parent, sibling, grandparent, or guardian of the student athlete or an individual acting solely on behalf of a professional sports team or professional sports organization.

Subd. 4.

Athletic director.

"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.

Subd. 5.

Commissioner.

"Commissioner" means the commissioner of commerce.

Subd. 6.

Contact.

"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.

Subd. 7.

Endorsement contract.

"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.

Subd. 8.

Intercollegiate sport.

"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.

Subd. 9.

Person.

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

Subd. 10.

Professional sports services contract.

"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.

Subd. 11.

Record.

"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.

Subd. 12.

Registration.

"Registration" means registration as an athlete agent under sections 81A.01 to 81A.21.

Subd. 13.

State.

"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.

Subd. 14.

Student athlete.

"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.

81A.04 CERTIFICATE OF REGISTRATION REQUIRED.

Subdivision 1.

General requirement.

Except as otherwise provided in subdivision 2, an individual may not act as an athlete agent in this state without holding a certificate of registration under section 81A.06.

Subd. 2.

Exceptions.

Before being issued a certificate of registration, an individual may act as an athlete agent in this state for all purposes except signing an agency contract, if:

(1) a student athlete or another person acting on behalf of the student athlete initiates communication with the individual; and

(2) within seven days after an initial act as an athlete agent, the individual submits an application for registration as an athlete agent in this state.

Subd. 3.

Contracts void.

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.

81A.05 REGISTRATION PROCESS.

Subdivision 1.

Requirements.

An applicant for registration shall submit an application for registration to the commissioner in a form prescribed by the commissioner. The application must be in the name of an individual and, except as otherwise provided in subdivision 2, signed or otherwise authenticated by the applicant under penalty of perjury, and state or contain:

(1) the name of the applicant and the address of the applicant's principal place of business;

(2) the name of the applicant's business or employer, if applicable;

(3) any business or occupation engaged in by the applicant for the five years next preceding the date of submission of the application;

(4) a description of the applicant's:

(i) formal training as an athlete agent;

(ii) practical experience as an athlete agent; and

(iii) educational background relating to the applicant's activities as an athlete agent;

(5) the names and addresses of three individuals not related to the applicant who are willing to serve as references;

(6) the name, sport, and last known team for each individual for whom the applicant acted as an athlete agent during the five years next preceding the date of submission of the application;

(7) 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, members, officers, managers, associates, or profit-sharers of the business; and

(ii) with respect to a corporation employing the athlete agent, the officers, directors, and any shareholder of the corporation having an interest of five percent or greater;

(8) whether the applicant or any person named under clause (7) has been convicted of a crime that, if committed in this state, would be a crime involving moral turpitude or a felony, and identify the crime;

(9) whether there has been any administrative or judicial determination that the applicant or any person named under clause (7) has made a false, misleading, deceptive, or fraudulent representation;

(10) any instance in which the conduct of the applicant or any person named under clause (7) 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;

(11) any sanction, suspension, or disciplinary action taken against the applicant or any person named under clause (7) arising out of occupational or professional conduct; and

(12) whether there has been any denial of an application for, suspension or revocation of, or refusal to renew, the registration or licensure of the applicant or any person named under clause (7) as an athlete agent in any state.

Subd. 2.

Reciprocal applications or certificates.

An individual who has submitted an application for, and holds a certificate of, registration or licensure as an athlete agent in another state may submit a copy of the application and certificate in lieu of submitting an application in the form prescribed under subdivision 1. The commissioner must accept the application and the certificate from the other state as an application for registration in this state if the application to the other state:

(1) was submitted in the other state within six months next preceding the submission of the application in this state and the applicant certifies that the information contained in the application is current;

(2) contains information substantially similar to or more comprehensive than that required in an application submitted in this state; and

(3) was signed by the applicant under penalty of perjury.

81A.06 ISSUANCE OF CERTIFICATE OF REGISTRATION.

Subdivision 1.

Authority.

Except as otherwise provided in subdivision 2, the commissioner must issue a certificate of registration to an individual who complies with section 81A.05, subdivision 1, or whose application has been accepted under section 81A.05, subdivision 2.

Subd. 2.

Refusal.

(a) The commissioner may refuse to issue a certificate of registration if the commissioner determines that the applicant has engaged in conduct that has a significant adverse effect on the applicant's fitness to act as an athlete agent. In making the determination, the commissioner may consider whether the applicant has:

(1) been convicted of a crime that, if committed in this state, would be a crime involving moral turpitude or a felony;

(2) made a materially false, misleading, deceptive, or fraudulent representation in the application or as an athlete agent;

(3) engaged in conduct that would disqualify the applicant from serving in a fiduciary capacity;

(4) engaged in conduct prohibited by section 81A.14;

(5) had a registration or licensure as an athlete agent suspended, revoked, or denied or been refused renewal of registration or licensure as an athlete agent in any state;

(6) engaged 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; or

(7) engaged in conduct that significantly adversely reflects on the applicant's credibility, honesty, or integrity.

(b) In making a determination under paragraph (a), the commissioner shall consider:

(1) how recently the conduct occurred;

(2) the nature of the conduct and the context in which it occurred; and

(3) any other relevant conduct of the applicant.

Subd. 3.

Renewals.

An athlete agent may apply to renew a registration by submitting an application for renewal in a form prescribed by the commissioner. The application for renewal must be signed by the applicant under penalty of perjury and must contain current information on all matters required in an original registration.

Subd. 4.

Reciprocal renewals.

An individual who has submitted an application for renewal of registration or licensure in another state, in lieu of submitting an application for renewal in the form prescribed under subdivision 3, may file a copy of the application for renewal and a valid certificate of registration or licensure from the other state. The commissioner must accept the application for renewal from the other state as an application for renewal in this state if the application to the other state:

(1) was submitted in the other state within six months next preceding the filing in this state and the applicant certifies the information contained in the application for renewal is current;

(2) contains information substantially similar to or more comprehensive than that required in an application for renewal submitted in this state; and

(3) was signed by the applicant under penalty of perjury.

Subd. 5.

Term.

A certificate of registration or a renewal of a registration is valid for two years.

81A.07 SUSPENSION, REVOCATION, OR REFUSAL TO RENEW REGISTRATION.

Subdivision 1.

Authority.

The commissioner may suspend, revoke, or refuse to renew a registration for conduct that would have justified denial of registration under section 81A.06, subdivision 2.

Subd. 2.

Notice and hearing requirements.

The commissioner may deny, suspend, revoke, or refuse to renew a certificate of registration or licensure only under chapter 14.

81A.10 FORM OF CONTRACT.

Subdivision 1.

Required authentication.

An agency contract must be in a record, signed or otherwise authenticated by the parties.

Subd. 2.

Contents.

An agency contract must state or contain:

(1) 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;

(2) the name of any person not listed in the application for registration or renewal of registration who will be compensated because the student athlete signed the agency contract;

(3) a description of any expenses that the student athlete agrees to reimburse;

(4) a description of the services to be provided to the student athlete;

(5) the duration of the contract; and

(6) the date of execution.

Subd. 3.

Notice.

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:

(1) YOU MAY LOSE YOUR ELIGIBILITY TO COMPETE AS A STUDENT ATHLETE IN YOUR SPORT;

(2) IF YOU HAVE AN ATHLETIC DIRECTOR, WITHIN 72 HOURS AFTER ENTERING INTO THIS CONTRACT, BOTH YOU AND YOUR ATHLETE AGENT MUST NOTIFY YOUR ATHLETIC DIRECTOR; AND

(3) YOU MAY CANCEL THIS CONTRACT WITHIN 14 DAYS AFTER SIGNING IT. CANCELLATION OF THIS CONTRACT MAY NOT REINSTATE YOUR ELIGIBILITY.

Subd. 4.

Voidability.

An agency contract that does not conform to this section is voidable by the student athlete. If a student athlete voids an agency contract, the student athlete is not required to pay any consideration under the contract or to return any consideration received from the athlete agent to induce the student athlete to enter into the contract.

Subd. 5.

Record to student athlete.

The athlete agent shall give a record of the signed or otherwise authenticated agency contract to the student athlete at the time of execution.

81A.11 NOTICE TO EDUCATIONAL INSTITUTION.

Subdivision 1.

By athlete agent.

Within 72 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 must give notice in a record of the existence of the contract 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.

Subd. 2.

By student athlete.

Within 72 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 must 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. The commissioner has no enforcement authority with respect to a violation of this subdivision by a student athlete.

81A.12 STUDENT ATHLETE'S RIGHT TO CANCEL.

Subdivision 1.

Generally.

A student athlete may cancel an agency contract by giving notice of the cancellation to the athlete agent in a record within 14 days after the contract is signed.

Subd. 2.

Nonwaivability.

A student athlete may not waive the right to cancel an agency contract.

Subd. 3.

Effect.

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 athlete agent to induce the student athlete to enter into the contract.

81A.13 REQUIRED RECORDS.

Subdivision 1.

Retention.

An athlete agent must retain the following records for a period of five years:

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

(2) any agency contract entered into by the athlete agent; and

(3) any direct costs incurred by the athlete agent in the recruitment or solicitation of a student athlete to enter into an agency contract.

Subd. 2.

Inspection rights.

Records required by subdivision 1 to be retained are open to inspection by the commissioner during normal business hours.

81A.14 PROHIBITED CONDUCT.

Subdivision 1.

Conduct intended to induce a student athlete to enter into an agency contract.

An athlete agent, with the intent to induce a student athlete to enter into an agency contract, may not:

(1) give any materially false or misleading information or make a materially false promise or representation;

(2) furnish anything of value to a student athlete before the student athlete enters into the agency contract; or

(3) furnish anything of value to any individual other than the student athlete or another registered athlete agent.

Subd. 2.

Other intentional conduct.

An athlete agent may not intentionally:

(1) initiate contact with a student athlete unless registered under sections 81A.01 to 81A.21;

(2) refuse or fail to retain or permit inspection of the records required to be retained by section 81A.13;

(3) fail to register when required by section 81A.04;

(4) provide materially false or misleading information in an application for registration or renewal of registration;

(5) predate or postdate an agency contract; or

(6) fail to notify a student athlete before the student athlete signs or otherwise authenticates an agency contract for a particular sport that the signing or authentication may make the student athlete ineligible to participate as a student athlete in that sport.

Subd. 3.

Misconduct of athlete agents.

An athlete agent must not violate section 325E.33.

81A.19 ELECTRONIC SIGNATURES IN GLOBAL AND NATIONAL COMMERCE ACT.

Sections 81A.01 to 81A.21 governing the legal effect, validity, or enforceability of electronic records or signatures, and of contracts formed or performed with the use of such records or signatures are intended to conform to the requirements of section 102 of the Electronic Signatures in Global and National Commerce Act, Public Law 106-229, 114 Stat. 464 (2000), and supersede, modify, and limit the Electronic Signatures in Global and National Commerce Act.

81A.20 SEVERABILITY.

If any provision of sections 81A.01 to 81A.21 or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of sections 81A.01 to 81A.21 which can be given effect without the invalid provision or application, and to this end the provisions of sections 81A.01 to 81A.21 are severable.

81A.21 EFFECT ON OTHER LAW.

Sections 81A.01 to 81A.21 do not limit the applicability of section 325E.33.