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Minnesota Legislature

Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language

                            CHAPTER 332-H.F.No. 2719 
                  An act relating to higher education; providing for 
                  registration of agents of student athletes; defining 
                  terms; providing penalties and remedies; appropriating 
                  money; proposing coding for new law as Minnesota 
                  Statutes, chapter 81A. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  [81A.01] [SHORT TITLE.] 
           Sections 81A.01 to 81A.21 may be cited as the Uniform 
        Athlete Agents Act. 
           Sec. 2.  [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. 
           Sec. 3.  [81A.03] [SERVICE OF PROCESS; INVESTIGATING 
        POWERS.] 
           Subdivision 1.  [APPOINTMENT OF AGENT.] By acting as an 
        athlete agent in this state, a nonresident individual appoints 
        the commissioner as the individual's agent for service of 
        process in any civil action in this state related to the 
        individual's acting as an athlete agent in this state. 
           Subd. 2.  [SUBPOENA AND ENFORCEMENT POWERS.] The 
        commissioner may issue subpoenas for any material that is 
        relevant to the administration of sections 81A.01 to 81A.21 and 
        exercise other enforcement powers available to the commissioner 
        under chapter 45. 
           Sec. 4.  [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 or 81A.08. 
           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. 
           Sec. 5.  [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. 
           Sec. 6.  [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. 
           Sec. 7.  [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. 
           Sec. 8.  [81A.08] [TEMPORARY REGISTRATION.] 
           The commissioner may issue a temporary certificate of 
        registration while an application for registration or renewal of 
        registration is pending. 
           Sec. 9.  [81A.09] [REGISTRATION AND RENEWAL FEES.] 
           An application for registration must be accompanied by a 
        $500 fee.  An application for renewal of registration must be 
        accompanied by a $400 fee. 
           Sec. 10.  [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. 
           Sec. 11.  [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. 
           Sec. 12.  [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. 
           Sec. 13.  [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. 
           Sec. 14.  [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. 
           Sec. 15.  [81A.15] [CRIMINAL PENALTIES.] 
           An athlete agent who violates section 81A.14 is guilty of a 
        gross misdemeanor. 
           Sec. 16.  [81A.16] [CIVIL REMEDIES.] 
           Subdivision 1.  [PRIVATE RIGHT OF ACTION BY EDUCATIONAL 
        INSTITUTION.] An educational institution has a right of action 
        against an athlete agent or a former student athlete for damages 
        caused by a violation of sections 81A.01 to 81A.21.  In an 
        action under this section, the court may award costs and 
        reasonable attorney's fees. 
           Subd. 2.  [DAMAGES.] Damages of an educational institution 
        under subdivision 1 include losses and expenses incurred 
        because, as a result of the conduct of an athlete agent or 
        former student athlete, the educational institution was injured 
        by a violation of sections 81A.01 to 81A.21 or was penalized, 
        disqualified, or suspended from participation in athletics by a 
        national association for the promotion and regulation of 
        athletics, by an athletic conference, or by reasonable 
        self-imposed disciplinary action taken to mitigate sanctions 
        likely to be imposed by such an organization. 
           Subd. 3.  [ACCRUAL OF ACTION.] A right of action under this 
        section does not accrue until the educational institution 
        discovers, or by the exercise of reasonable diligence would have 
        discovered, the violation by the athlete agent or former student 
        athlete. 
           Subd. 4.  [SEVERAL LIABILITY.] Any liability of the athlete 
        agent or the former student athlete under this section is 
        several and not joint. 
           Subd. 5.  [OTHER RIGHTS, REMEDIES, OR DEFENSES.] Sections 
        81A.01 to 81A.21 do not restrict rights, remedies, or defenses 
        of any person under law or equity. 
           Sec. 17.  [81A.17] [ADMINISTRATIVE PENALTY.] 
           The commissioner may assess a civil penalty against an 
        athlete agent not to exceed $25,000 for a violation of sections 
        81A.01 to 81A.21, in accordance with chapters 14 and 45. 
           Sec. 18.  [81A.18] [UNIFORMITY OF APPLICATION AND 
        CONSTRUCTION.] 
           In applying and construing this uniform act, consideration 
        must be given to the need to promote uniformity of the law with 
        respect to its subject matter among states that enact it. 
           Sec. 19.  [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 Number 106-229, 114 
        Stat. 464 (2000), and supersede, modify, and limit the 
        Electronic Signatures in Global and National Commerce Act. 
           Sec. 20.  [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. 
           Sec. 21.  [81A.21] [EFFECT ON OTHER LAW.] 
           Sections 81A.01 to 81A.21 do not limit the applicability of 
        section 325E.33. 
           Sec. 22.  [APPROPRIATION.] 
           $30,000 is appropriated from the general fund in fiscal 
        year 2003 to the commissioner of commerce for purposes of this 
        act.  The general fund base in fiscal year 2004 is $21,000, and 
        in fiscal year 2005 is $22,000. 
           Sec. 23.  [EFFECTIVE DATE.] 
           Sections 1 to 22 are effective January 1, 2003. 
           Presented to the governor April 9, 2002 
           Signed by the governor April 10, 2002, 3:10 p.m.