HB126 - 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.

      H.B. No. 126         AN ACT   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),   (c-3), and (k-1) 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 Subsections (c-3) and (k-1), 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.           (k-1)     Unless a prospective student athlete younger than 17   years of age is enrolled at an institution of higher education, an   individual, corporate entity, or other organization, including an   institution to which this section applies, may not enter into an   arrangement relating to the athlete's name, image, or likeness with   the athlete or with an individual related to the athlete by   consanguinity or affinity.          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.       ______________________________ ______________________________      President of the Senate Speaker of the House                   I certify that H.B. No. 126 was passed by the House on April   15, 2025, by the following vote:  Yeas 125, Nays 19, 2 present, not   voting; that the House concurred in Senate amendments to   H.B. No. 126 on May 29, 2025, by the following vote:  Yeas 110,   Nays 25, 1 present, not voting; and that the House adopted   H.C.R. No. 168 authorizing certain corrections in H.B. No. 126 on   May 29, 2025, by the following vote: Yeas 131, Nays 0, 1 present,   not voting.     ______________________________   Chief Clerk of the House               I certify that H.B. No. 126 was passed by the Senate, with   amendments, on May 27, 2025, by the following vote:  Yeas 31, Nays   0; and that the Senate adopted H.C.R. No. 168 authorizing certain   corrections in H.B. No. 126 on May 30, 2025, by the following vote:   Yeas 31, Nays 0.     ______________________________   Secretary of the Senate      APPROVED: __________________                   Date                       __________________                 Governor