Relating to the compensation and professional representation of prospective student athletes and student athletes participating in intercollegiate athletic programs at certain institutions of higher education.
relating to the compensation and professional representation of
prospective student athletes and student athletes participating in
intercollegiate athletic programs at certain institutions of
higher education.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 51.9246, Education Code, is amended by
amending Subsections (c) and (g) and adding Subsections (c-2) and
(c-3) to read as follows:
(c) An institution to which this section applies may not[:
[(1)] adopt or enforce a policy, requirement,
standard, or limitation that prohibits or otherwise prevents a
student athlete participating in an intercollegiate athletic
program at the institution from:
(1) [(A)] earning compensation for the use of the
student athlete’s name, image, or likeness when the student athlete
is not engaged in official team activities, as that term is defined
by the institution; or
(2) [(B)] obtaining professional representation,
including representation by an attorney licensed to practice law in
this state, for contracts or other legal matters relating to the use
of the student athlete’s name, image, or likeness[; or
[(2) provide or solicit a prospective student athlete
of an intercollegiate athletic program at the institution with
compensation in relation to the prospective student athlete’s name,
image, or likeness].
(c-2) This subsection applies only to the extent of a
conflict between this section and a contract term, a rule, a
regulation, a standard, or any other requirement of or court order
applicable to a group or organization with authority over an
intercollegiate athletic program at an institution to which this
section applies, including an athletic association or an athletic
conference. Subject to Subsection (c-3), an institution to which
this section applies, a prospective student athlete, a student
athlete participating in an intercollegiate athletic program at an
institution to which this section applies, or any other individual
or entity may perform, allow the performance of, or participate in
an action authorized or required by:
(1) a group or organization with authority over an
intercollegiate athletic program at an institution to which this
section applies, including an athletic association or an athletic
conference; or
(2) a final court order applicable to a group or
organization described by Subdivision (1).
(c-3) An institution’s, individual’s, or entity’s
performance or allowance of performance of or participation in an
action authorized by Subsection (c-2) subjects that institution,
individual, or entity to any applicable rule, including an
enforcement provision, adopted by the group or organization with
authority over an intercollegiate athletic program at an
institution to which this section applies, including an athletic
association or an athletic conference.
(g) A student athlete participating in an intercollegiate
athletic program at an institution to which this section applies:
(1) shall, before entering into the contract, disclose
to the institution, in the manner prescribed by the institution,
any proposed contract the student athlete may sign for use of the
student athlete’s name, image, or likeness;
(2) may not enter into a contract for the use of the
student athlete’s name, image, or likeness if:
(A) any provision of the contract conflicts with
a provision of the student athlete’s team contract, a provision of
an institutional contract of the institution, a policy of the
athletic department of the institution, or a provision of the honor
code of the institution;
(B) the compensation for the use of the student
athlete’s name, image, or likeness is provided:
(i) in exchange for athletic performance
[or accepting an offer of admission to attend the institution;
[(ii) by the institution;
[(iii) in exchange for an act that occurs
while the athlete is engaged in an official team activity]; or
(ii) [(iv)] in exchange for an endorsement
of alcohol, tobacco products, e-cigarettes or any other type of
nicotine delivery device, anabolic steroids, sports betting,
casino gambling, a firearm the student athlete cannot legally
purchase, or a sexually oriented business as defined in Section
243.002, Local Government Code; or
(C) the duration of the contract extends beyond
the student athlete’s participation in the intercollegiate
athletic program;
(3) is not considered an employee of the institution
based on the student athlete’s participation in the intercollegiate
athletic program;
(4) may earn compensation from selling the student
athlete’s autograph in a manner that does not otherwise conflict
with a provision of this section; and
(5) may not use an institution’s facility, uniform,
registered trademark, copyright-protected product, or official
logo, mark, or other indicia in connection with a contract for the
use of the student athlete’s name, image, or likeness unless the
student athlete obtains the institution’s express permission.
SECTION 2. Sections 51.9246(g-1) and (j), Education Code,
are repealed.
SECTION 3. The changes in law made by this Act apply only to
compensation for the use of a student athlete’s name, image, or
likeness paid on or after the effective date of this Act.
Compensation for the use of a student athlete’s name, image, or
likeness paid before the effective date of this Act is governed by
the law as it existed immediately before the effective date of this
Act, and that law is continued in effect for that purpose.
SECTION 4. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2025.
