Tepper’s bill loosening college athlete pay rules

The text as introduced · 689 words

89R15538 BEE-F

By: Tepper
H.B. No. 3220

A BILL TO BE ENTITLED

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. Sections 51.9246(c) and (g), Education Code, are

amended 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 ].

(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

a contract for the use of a student athlete's name, image, or

likeness entered into on or after the effective date of this Act. A

contract for the use of a student athlete's name, image, or likeness

entered into 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.