bill barring interest-bearing advances on athletes’ NIL income

The text as introduced · 363 words

By: West
S.B. No. 2030

A BILL TO BE ENTITLED

AN ACT

relating to prohibited student athlete name, image, and likeness

agreements; providing injunctive relief and a civil penalty.

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

SECTION 1. Subtitle B, Title 13, Occupations Code, is

amended by adding Chapter 2053 to read as follows:

CHAPTER 2053. NAME, IMAGE, AND LIKENESS AGREEMENTS

Sec. 2053.001. DEFINITION. In this chapter, "student

athlete" means an individual who as a student participates in:

(1) a University Interscholastic League activity; or

(2) an intercollegiate athletic program at an

institution of higher education.

Sec. 2053.002. PROHIBITED NAME, IMAGE, AND LIKENESS

AGREEMENTS. A person may not enter into an agreement with a student

athlete under which:

(1) the student athlete is advanced a percentage of

future or anticipated name, image, and likeness income earned by

the student athlete; and

(2) the student athlete is charged interest on the

advance described in subsection (1).

Sec. 2053.003. PROHIBITED AGREEMENTS VOID AND

UNENFORCEABLE. An agreement entered into in violation of Section

2053.002 or any language in an agreement that circumvents the

prohibition imposed under that section or otherwise achieves the

same or a substantially similar effect as a prohibited agreement is

void and unenforceable.

Sec. 2053.004. PROHIBITED WAIVER. An agreement may not

waive the requirements of this chapter. A purported waiver of this

chapter is a violation of this section and is void.

Sec. 2053.005. CIVIL PENALTY; INJUNCTIVE RELIEF. (a) A

person who violates this chapter is liable for a civil penalty not

to exceed $100,000 for each violation.

(b) The attorney general may bring an action in the name of

this state to:

(1) recover a civil penalty under Subsection (a);

(2) restrain or enjoin the person from violating this

chapter; or

(3) recover the civil penalty under Subsection (a) and

seek injunctive relief.

(c) The attorney general may recover reasonable attorney's

fees and court costs in bringing an action under this section.

SECTION 2. Chapter 2053, Occupations Code, as added by this

Act, applies only to an agreement entered into on or after the

effective date of this Act.

SECTION 3. This Act takes effect September 1, 2025.