Texas 2021 - 87th Regular

Texas Senate Bill SB1385 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	S.B. No. 1385
	1	+	By: Creighton, et al. S.B. No. 1385
	2	+	(Murphy, Krause)
2	3
3	4
	5	+	A BILL TO BE ENTITLED
4	6		AN ACT
5	7		relating to the compensation and professional representation of
6	8		student athletes participating in intercollegiate athletic
7	9		programs at certain institutions of higher education.
8	10		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	11		SECTION 1. The legislature finds and declares the
10	12		following:
11	13		(1) intercollegiate athletics are an essential part of
12	14		the fabric of this state;
13	15		(2) the competitive integrity of intercollegiate
14	16		athletics is of vital importance;
15	17		(3) the United States Congress has failed to act to
16	18		provide uniform guidance to the states on the matter of
17	19		intercollegiate athletes receiving compensation in exchange for
18	20		the use of the athlete's name, image, or likeness; and
19	21		(4) the United States Congress must act on this matter
20	22		to ensure the competitive integrity of intercollegiate athletics.
21	23		SECTION 2. Subchapter Z, Chapter 51, Education Code, is
22	24		amended by adding Section 51.9246 to read as follows:
23	25		Sec. 51.9246. COMPENSATION AND PROFESSIONAL REPRESENTATION
24	26		OF STUDENT ATHLETES PARTICIPATING IN INTERCOLLEGIATE ATHLETIC
25	27		PROGRAMS. (a) In this section:
26	28		(1) "Athlete agent" has the meaning assigned by
27	29		Section 2051.001, Occupations Code.
28	30		(2) "General academic teaching institution" and
29	31		"private or independent institution of higher education" have the
30	32		meanings assigned by Section 61.003.
31	33		(3) "Honor code" means a set of rules or principles
32	34		governing an academic community to which a student agrees to abide
33	35		when attending an institution to which this section applies.
34	36		(4) "Institutional contract" means a contract between
35	37		an institution to which this section applies or its designated
36	38		representative and an external party that includes a sponsorship
37	39		agreement governing the use of the institution's trademarks in
38	40		connection with athletics.
39	41		(5) "Team contract" means a contract between a student
40	42		athlete and an institution to which this section applies and
41	43		includes any rules or expectations of the institution's athletic
42	44		department or head coach that require a student athlete's
43	45		compliance as a condition under the contract of participation as a
44	46		member of the intercollegiate athletic program.
45	47		(b) This section applies only to:
46	48		(1) a general academic teaching institution; or
47	49		(2) a private or independent institution of higher
48	50		education.
49	51		(c) An institution to which this section applies may not:
50	52		(1) adopt or enforce a policy, requirement, standard,
51	53		or limitation that prohibits or otherwise prevents a student
52	54		athlete participating in an intercollegiate athletic program at the
53	55		institution from:
54	56		(A) earning compensation for the use of the
55	57		student athlete's name, image, or likeness when the student athlete
56	58		is not engaged in official team activities, as that term is defined
57	59		by the institution; or
58	60		(B) obtaining professional representation,
59		-	including representation by an attorney ~~licensed to practice law in~~
60		-	~~this state, for~~ contracts or other legal matters relating to the use
61		-	~~of the student~~ athlete's name, image, or likeness; or
	61	+	including representation by an athlete agent or attorney, for
	62	+	contracts or other legal matters relating to the use of the student
	63	+	athlete's name, image, or likeness; or
62	64		(2) provide or solicit a prospective student athlete
63	65		of an intercollegiate athletic program at the institution with
64	66		compensation in relation to the prospective student athlete's name,
65	67		image, or likeness.
66	68		(d) A scholarship, grant, or similar financial assistance
67	69		awarded to a student athlete by an institution to which this section
68	70		applies that covers the student athlete's cost of attendance at the
69	71		institution is not compensation for purposes of this section.
70	72		(e) A student athlete participating in an intercollegiate
71	73		athletic program at an institution to which this section applies
72	74		may not be disqualified from eligibility for a scholarship, grant,
73	75		or similar financial assistance awarded by the institution because
74	76		the student athlete:
75	77		(1) earns compensation from the use of the student
76	78		athlete's name, image, or likeness when the student athlete is not
77	79		engaged in official team activities; or
78	80		(2) obtains professional representation, including
79		-	representation by an attorney ~~licensed to practice law in this~~
80		-	~~state, for contracts or~~ other legal matters relating to use of the
81		-	~~student athlete's name,~~ image, or likeness.
	81	+	representation by an athlete agent or attorney, for contracts or
	82	+	other legal matters relating to use of the student athlete's name,
	83	+	image, or likeness.
82	84		(f) An institution to which this section applies may not
83	85		prescribe a team contract for an intercollegiate athletic program
84	86		that prohibits or otherwise prevents a student athlete from using
85	87		the student athlete's name, image, or likeness for a commercial
86	88		purpose when the student athlete is not engaged in official team
87	89		activities.
88	90		(g) A student athlete participating in an intercollegiate
89	91		athletic program at an institution to which this section applies:
90	92		(1) shall, before entering into the contract, disclose
91	93		to the institution, in the manner prescribed by the institution,
92	94		any proposed contract the student athlete may sign for use of the
93	95		student athlete's name, image, or likeness;
94	96		(2) may not enter into a contract for the use of the
95	97		student athlete's name, image, or likeness if:
96	98		(A) any provision of the contract conflicts with
97	99		a provision of the student athlete's team contract, a provision of
98	100		an institutional contract of the institution, a policy of the
99	101		athletic department of the institution, or a provision of the honor
100	102		code of the institution;
101	103		(B) the compensation for the use of the student
102	104		athlete's name, image, or likeness is provided:
103	105		(i) in exchange for athletic performance or
104	106		attendance at the institution;
105	107		(ii) by the institution;
106	108		(iii) in exchange for property owned by the
107	109		institution or for providing an endorsement while using
108	110		intellectual property or other property owned by the institution;
109	111		or
110	112		(iv) in exchange for an endorsement of
111	113		alcohol, tobacco products, e-cigarettes or any other type of
112	114		nicotine delivery device, anabolic steroids, sports betting,
113	115		casino gambling, a firearm the student athlete cannot legally
114	116		purchase, or a sexually oriented business as defined in Section
115	117		243.002, Local Government Code; or
116	118		(C) the duration of the contract extends beyond
117	119		the student athlete's participation in the intercollegiate
118	120		athletic program;
119		-	(3) is not considered an employee of the institution
	121	+	(3) may not enter into a contract for the student
	122	+	athlete's representation by an athlete agent relating to use of the
	123	+	student athlete's name, image, or likeness unless the athlete agent
	124	+	holds a certificate of registration under Chapter 2051, Occupations
	125	+	Code;
	126	+	(4) is not considered an employee of the institution
120	127		based on the student athlete's participation in the intercollegiate
121	128		athletic program; and
122		-	(4) may earn compensation from selling the student
	129	+	(5) may earn compensation from selling the student
123	130		athlete's autograph in a manner that does not otherwise conflict
124	131		with a provision of this section.
125	132		(h) An institution to which this section applies that
126	133		identifies a provision in a contract disclosed to the institution
127	134		by a student athlete under Subsection (g)(1) that conflicts with a
128	135		provision in the student athlete's team contract, a provision of an
129	136		institutional contract of the institution, a policy of the athletic
130	137		department of the institution, or a provision of the honor code of
131	138		the institution shall promptly disclose the conflict to the student
132	139		athlete or the student athlete's representative, if applicable.
133	140		The student athlete or the student athlete's representative is
134	141		responsible for resolving the conflict not later than the 10th day
135	142		after the date of the disclosure.
136	143		(i) An institution to which this section applies shall
137	144		require a student athlete participating in an intercollegiate
138	145		athletic program at the institution to attend a financial literacy
139	146		and life skills workshop at the beginning of the student's first and
140	147		third academic years at the institution. The workshop must be at
141	148		least five hours in duration and include information on financial
142	149		aid, debt management, time management, budgeting, and academic
143	150		resources available to the student athlete. The institution may
144	151		not during the workshop allow any provider of financial products or
145	152		services to:
146	153		(1) market, advertise, or refer the provider's
147	154		services to a student athlete; or
148	155		(2) solicit a student athlete to use the provider's
149	156		services.
150	157		(j) No individual, corporate entity, or other organization
151	158		may:
152	159		(1) enter into any arrangement with a prospective
153	160		student athlete relating to the prospective student athlete's name,
154	161		image, or likeness prior to their enrollment in an institution of
155	162		higher education; or
156	163		(2) use inducements of future name, image, and
157	164		likeness compensation arrangement to recruit a prospective student
158	165		athlete to any institution of higher education.
159		-	(k) Nothing in this section may be construed as permitting
160		-	an athlete agent to take any action prohibited under Section
161		-	2051.351, Occupations Code.
162		-	SECTION 3. Section 51.9246(f), Education Code, as added by
	166	+	SECTION 3. Section 2051.351, Occupations Code, is amended
	167	+	by adding Subsection (b-1) to read as follows:
	168	+	(b-1) This chapter, including this section, does not
	169	+	prohibit an athlete agent from representing a student athlete in
	170	+	the use of the student athlete's name, image, or likeness in
	171	+	accordance with Section 51.9246, Education Code.
	172	+	SECTION 4. Section 51.9246(f), Education Code, as added by
163	173		this Act, applies only to a contract entered into, modified, or
164	174		renewed on or after the effective date of this Act.
165		-	SECTION 4. This Act takes effect July 1, 2021, if it
166		-	receives a vote of two-thirds of all the members elected to each
167		-	house, as provided by Section 39, Article III, Texas Constitution.
168		-	If this Act does not receive the vote necessary to take effect July
169		-	1, 2021, this Act takes effect September 1, 2021.
170		-	______________________________ ______________________________
171		-	President of the Senate Speaker of the House
172		-	I hereby certify that S.B. No. 1385 passed the Senate on
173		-	April 22, 2021, by the following vote: Yeas 28, Nays 2, one
174		-	present not voting; and that the Senate concurred in House
175		-	amendment on May 28, 2021, by the following vote: Yeas 28, Nays 2,
176		-	one present not voting.
177		-	______________________________
178		-	Secretary of the Senate
179		-	I hereby certify that S.B. No. 1385 passed the House, with
180		-	amendment, on May 23, 2021, by the following vote: Yeas 117,
181		-	Nays 27, one present not voting.
182		-	______________________________
183		-	Chief Clerk of the House
184		-	Approved:
185		-	______________________________
186		-	Date
187		-	______________________________
188		-	Governor
	175	+	SECTION 5. This Act takes effect September 1, 2021.