Texas 2021 - 87th 2nd C.S.

Texas House Bill HB240 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	87S20663 MM-D
2	2	By: Cook H.B. No. 240
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the compensation and professional representation of
8	8	students participating in University Interscholastic League
9	9	activities.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Subchapter D, Chapter 33, Education Code, is
12	12	amended by adding Section 33.099 to read as follows:
13	13	Sec. 33.099. COMPENSATION AND PROFESSIONAL REPRESENTATION
14	14	OF STUDENTS PARTICIPATING IN UNIVERSITY INTERSCHOLASTIC LEAGUE
15	15	ACTIVITIES. (a) In this section:
16	16	(1) "Athlete agent" has the meaning assigned by
17	17	Section 2051.001, Occupations Code.
18	18	(2) "League" means the University Interscholastic
19	19	League.
20	20	(3) "Participation agreement" means an agreement
21	21	between a student and a school to which this section applies
22	22	regarding the student's participation in a league activity and
23	23	includes any rules or expectations of the school's league activity
24	24	department, head coach, or sponsor that require a student's
25	25	compliance as a condition of participation in the league activity.
26	26	(4) "School sponsorship contract" means a contract
27	27	between a school to which this section applies or its designated
28	28	representative and an external party that includes a sponsorship
29	29	agreement governing the use of the school's trademarks in
30	30	connection with a league activity.
31	31	(b) This section applies only to a public or private primary
32	32	or secondary school that participates in league activities.
33	33	(c) The league or a school to which this section applies may
34	34	not adopt or enforce a policy, requirement, standard, or limitation
35	35	that prohibits or otherwise prevents a student participating in a
36	36	league activity from:
37	37	(1) earning compensation for the use of the student's
38	38	name, image, or likeness when the student is not engaged in official
39	39	league activities, as that term is defined by the league; or
40	40	(2) obtaining professional representation, including
41	41	representation by an attorney licensed to practice law in this
42	42	state, for contracts or other legal matters relating to the use of
43	43	the student's name, image, or likeness.
44	44	(d) A scholarship, grant, or similar financial assistance
45	45	awarded to a student by a private school to which this section
46	46	applies that covers the student's cost of attendance at the school
47	47	is not compensation for purposes of this section.
48	48	(e) A student participating in a league activity at a
49	49	private school to which this section applies may not be
50	50	disqualified from eligibility for a scholarship, grant, or similar
51	51	financial assistance awarded by the school because the student:
52	52	(1) earns compensation from the use of the student's
53	53	name, image, or likeness when the student is not engaged in official
54	54	league activities; or
55	55	(2) obtains professional representation, including
56	56	representation by an attorney licensed to practice law in this
57	57	state, for contracts or other legal matters relating to use of the
58	58	student's name, image, or likeness.
59	59	(f) A school to which this section applies may not:
60	60	(1) prescribe a participation agreement for a league
61	61	activity that prohibits or otherwise prevents a student from using
62	62	the student's name, image, or likeness for a commercial purpose
63	63	when the student is not engaged in official league activities; or
64	64	(2) provide or solicit a prospective student of a
65	65	league activity at the school with compensation in relation to the
66	66	prospective student's name, image, or likeness.
67	67	(g) A student who is 18 years of age or older, or the parent
68	68	of or person standing in parental relation to a student who is not
69	69	18 years of age or older, and who participates in a league activity
70	70	at a school to which this section applies:
71	71	(1) shall, before entering into the contract, disclose
72	72	to the school, in the manner prescribed by the school, any proposed
73	73	contract for use of the student's name, image, or likeness; and
74	74	(2) may not enter into a contract for the use of the
75	75	student's name, image, or likeness if:
76	76	(A) any provision of the contract conflicts with
77	77	a provision of the student's participation agreement, a provision
78	78	of a school sponsorship contract of the school, a policy of the
79	79	league activity department at the school, or a provision of the
80	80	student code of conduct of the school;
81	81	(B) the compensation for the use of the student's
82	82	name, image, or likeness is provided:
83	83	(i) in exchange for league activity
84	84	performance or attendance at the school;
85	85	(ii) by the school;
86	86	(iii) in exchange for property owned by the
87	87	school or for providing an endorsement while using intellectual
88	88	property or other property owned by the school; or
89	89	(iv) in exchange for an endorsement of
90	90	alcohol, tobacco products, e-cigarettes or any other type of
91	91	nicotine delivery device, anabolic steroids, sports betting,
92	92	casino gambling, a firearm the student cannot legally purchase, or
93	93	a sexually oriented business as defined in Section 243.002, Local
94	94	Government Code; or
95	95	(C) the duration of the contract extends beyond
96	96	the student's participation in the league activity.
97	97	(h) A student participating in a league activity at a school
98	98	to which this section applies:
99	99	(1) is not considered an employee of the school based
100	100	on the student's participation in the league activity; and
101	101	(2) may earn compensation from selling the student's
102	102	autograph in a manner that does not otherwise conflict with a
103	103	provision of this section.
104	104	(i) A school to which this section applies that identifies a
105	105	provision in a contract disclosed to the school by a student under
106	106	Subsection (g)(1) that conflicts with a provision in the student's
107	107	participation agreement, a provision of a school sponsorship
108	108	contract of the school, a policy of the league activity department
109	109	of the school, or a provision of the student code of conduct of the
110	110	school shall promptly disclose the conflict to the student or the
111	111	student's parent or person standing in parental relation to the
112	112	student, as applicable. The student or the student's parent or
113	113	person standing in parental relation to the student, as applicable,
114	114	is responsible for resolving the conflict not later than the 10th
115	115	day after the date of the disclosure.
116	116	(j) A student participating in a league activity at a school
117	117	to which this section applies may not access any money earned as
118	118	compensation for the use of the student's name, image, or likeness
119	119	until the date on which the student:
120	120	(1) becomes 18 years of age or graduates from high
121	121	school, whichever occurs later; or
122	122	(2) is emancipated through marriage, through removal
123	123	of the disabilities of minority by court order, or by other
124	124	operation of law.
125	125	(k) A student's parent or person standing in parental
126	126	relation to a student owes a fiduciary duty to the student to manage
127	127	any compensation the student receives for the use of the student's
128	128	name, image, or likeness.
129	129	(l) An individual, corporate entity, or other organization
130	130	may not:
131	131	(1) enter into any arrangement with a prospective
132	132	student or the student's parent or person standing in parental
133	133	relation to the student, as applicable, relating to the prospective
134	134	student's name, image, or likeness prior to their enrollment at a
135	135	school to which this section applies; or
136	136	(2) use inducements of future name, image, and
137	137	likeness compensation arrangement to recruit a prospective student
138	138	to any school to which this section applies.
139	139	(m) This section may not be construed as permitting an
140	140	athlete agent to take any action prohibited under Section 2051.351,
141	141	Occupations Code.
142	142	SECTION 2. Section 51.9246(j), Education Code, as added by
143	143	S.B. 1385, Acts of the 87th Legislature, Regular Session, 2021, is
144	144	amended to read as follows:
145	145	(j) No individual, corporate entity, or other organization
146	146	may:
147	147	(1) prior to a prospective student athlete's
148	148	enrollment in an institution of higher education, enter into any
149	149	arrangement with the [a] prospective student athlete relating to
150	150	the prospective student athlete's name, image, or likeness while
151	151	enrolled at [prior to their enrollment in] an institution of higher
152	152	education; or
153	153	(2) use inducements of future name, image, and
154	154	likeness compensation arrangement to recruit a prospective student
155	155	athlete to any institution of higher education.
156	156	SECTION 3. Section 33.099(g), Education Code, as added by
157	157	this Act, applies only to a contract entered into, modified, or
158	158	renewed on or after the effective date of this Act.
159	159	SECTION 4. This Act takes effect immediately if it receives
160	160	a vote of two-thirds of all the members elected to each house, as
161	161	provided by Section 39, Article III, Texas Constitution. If this
162	162	Act does not receive the vote necessary for immediate effect, this
163	163	Act takes effect on the 91st day after the last day of the
164	164	legislative session.