87R78 KSD-D
By: Miles S.B. No. 421
A BILL TO BE ENTITLED
AN ACT
relating to the compensation and professional representation of
student athletes participating in intercollegiate athletic
programs at certain public and private 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, in
relation to contracts or other legal matters; 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, in relation to
contracts or other legal matters.
(f) A team contract of an athletic program at an institution
to which this section applies may not prohibit or otherwise prevent
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.
(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 that provides
compensation for the use of the student athlete's name, image, or
likeness if any provision of the contract conflicts with a
provision of the student athlete's team contract; and
(3) may not enter into a contract for the student
athlete's representation by an athlete agent 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, in
relation to contracts or other legal matters;
(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.
SECTION 2. 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 3. This Act takes effect January 1, 2023.