87R9361 ADM-D
By: Creighton S.B. No. 1385
A BILL TO BE ENTITLED
AN ACT
relating to the compensation and professional representation of
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. Subchapter Z, Chapter 51, Education Code, is
amended by adding Section 51.9246 to read as follows:
Sec. 51.9246. COMPENSATION AND PROFESSIONAL REPRESENTATION
OF STUDENT ATHLETES PARTICIPATING IN INTERCOLLEGIATE ATHLETIC
PROGRAMS. (a) In this section:
(1) "Athlete agent" has the meaning assigned by
Section 2051.001, Occupations Code.
(2) "General academic teaching institution" and
"private or independent institution of higher education" have the
meanings assigned by Section 61.003.
(b) This section applies only to:
(1) a general academic teaching institution; or
(2) a private or independent institution of higher
education.
(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:
(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; or
(B) obtaining professional representation,
including representation by an athlete agent or attorney, for
contracts or other legal matters relating to the use of the student
athlete's name, image, or likeness; or
(2) provide 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.
(d) A scholarship, grant, or similar financial assistance
awarded to a student athlete by an institution to which this section
applies that covers the student athlete's cost of attendance at the
institution is not compensation for purposes of this section.
(e) A student athlete participating in an intercollegiate
athletic program at an institution to which this section applies
may not be disqualified from eligibility for a scholarship, grant,
or similar financial assistance awarded by the institution because
the student athlete:
(1) earns compensation from the use of the student
athlete's name, image, or likeness when the student athlete is not
engaged in official team activities; or
(2) obtains professional representation, including
representation by an athlete agent or attorney, for contracts or
other legal matters relating to use of the student athlete's name,
image, or likeness.
(f) An institution to which this section applies:
(1) may not prescribe a team contract for an
intercollegiate athletic program that prohibits or otherwise
prevents a student athlete from using the student athlete's name,
image, or likeness for a commercial purpose when the student
athlete is not engaged in official team activities; and
(2) may adopt a policy requiring a team contract for an
intercollegiate athletic program to include a provision that
requires a student athlete to deposit all money paid as
compensation for the use of the student athlete's name, image, or
likeness into a trust fund to be held for the student athlete until
the student athlete is no longer eligible to participate in the
program.
(g) A student athlete participating in an intercollegiate
athletic program at an institution to which this section applies:
(1) shall promptly disclose to the institution, in the
manner prescribed by the institution, any contract entered into by
the student athlete 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;
(B) the compensation for the use of the student
athlete's name, image, or likeness exceeds the fair market value of
the use of the student athlete's name, image, or likeness;
(C) the compensation for the use of the student
athlete's name, image, or likeness is provided:
(i) in exchange for athletic performance or
attendance at the institution; or
(ii) by the institution or a person
affiliated with the institution; or
(D) the duration of the contract extends beyond
the student athlete's participation in the intercollegiate
athletic program; and
(3) may not enter into a contract for the student
athlete's representation by an athlete agent relating to use of the
student athlete's name, image, or likeness unless the athlete agent
holds a certificate of registration under Chapter 2051, Occupations
Code.
(h) An institution to which this section applies that
identifies a provision in a contract disclosed to the institution
by a student athlete under Subsection (g)(1) that conflicts with a
provision in the student athlete's team contract shall promptly
disclose the conflict to the student athlete or the student
athlete's representative, if applicable.
(i) An athletic association, conference, or other group or
organization with authority over intercollegiate athletics,
including the National Collegiate Athletic Association, may not:
(1) prohibit or prevent a student athlete from
participating in an intercollegiate athletic program at an
institution to which this section applies because the student
athlete:
(A) earns compensation from the use of the
student athlete's name, image, or likeness; or
(B) obtains professional representation,
including representation by an athlete agent or attorney, for
contracts or other legal matters relating to use of the student
athlete's name, image, or likeness;
(2) prohibit or prevent a student athlete
participating in an intercollegiate athletic program at an
institution to which this section applies from engaging in conduct
described by Subdivision (1)(A) or (B); or
(3) provide a prospective student athlete of an
intercollegiate athletic program at an institution to which this
section applies with compensation in relation to the prospective
student athlete's name, image, or likeness.
(j) An institution to which this section applies shall
require a student athlete participating in an intercollegiate
athletic program at the institution to attend a literacy and life
skills workshop at the beginning of the student's first and third
academic years at the institution. The workshop must be at least
five hours in duration and include information on financial aid,
debt management, time management, budgeting, and academic
resources available to the student athlete. The institution may
not during the workshop allow any provider of financial products or
services to:
(1) market, advertise, or refer the provider's
services to a student athlete; or
(2) solicit a student athlete to use the provider's
services.
SECTION 2. Section 2051.351, Occupations Code, is amended
by adding Subsection (b-1) to read as follows:
(b-1) This chapter, including this section, does not
prohibit an athlete agent from representing a student athlete in
the use of the student athlete's name, image, or likeness in
accordance with Section 51.9246, Education Code.
SECTION 3. Section 51.9246(f), Education Code, as added by
this Act, applies only to a contract entered into, modified, or
renewed on or after the effective date of this Act.
SECTION 4. This Act takes effect January 1, 2022.