Texas 2023 - 88th Regular

Texas House Bill HB2804 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	H.B. No. 2804
2	2
3	3
4	4	AN ACT
5	5	relating to use of the name, image, or likeness of a student athlete
6	6	participating in an intercollegiate athletic program at an
7	7	institution of higher education.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 51.9246, Education Code, is amended by
10	10	adding Subsections (a-1), (c-1), (g-1), (g-2), (l), (m), (n), (o),
11	11	and (p) and amending Subsections (g) and (i) to read as follows:
12	12	(a-1) For purposes of this section, official team
13	13	activities of an intercollegiate athletic program at an institution
14	14	to which this section applies include any activity the institution
15	15	designates as an official team activity.
16	16	(c-1) An athletic association, an athletic conference, or
17	17	any other group or organization with authority over an
18	18	intercollegiate athletic program at an institution to which this
19	19	section applies may not enforce a contract term, a rule, a
20	20	regulation, a standard, or any other requirement that prohibits the
21	21	institution from participating in intercollegiate athletics or
22	22	otherwise penalizes the institution or the institution's
23	23	intercollegiate athletic program for performing, participating in,
24	24	or allowing an activity required or authorized by this section.
25	25	(g) A student athlete participating in an intercollegiate
26	26	athletic program at an institution to which this section applies:
27	27	(1) shall, before entering into the contract, disclose
28	28	to the institution, in the manner prescribed by the institution,
29	29	any proposed contract the student athlete may sign for use of the
30	30	student athlete's name, image, or likeness;
31	31	(2) may not enter into a contract for the use of the
32	32	student athlete's name, image, or likeness if:
33	33	(A) any provision of the contract conflicts with
34	34	a provision of the student athlete's team contract, a provision of
35	35	an institutional contract of the institution, a policy of the
36	36	athletic department of the institution, or a provision of the honor
37	37	code of the institution;
38	38	(B) the compensation for the use of the student
39	39	athlete's name, image, or likeness is provided:
40	40	(i) in exchange for athletic performance or
41	41	accepting an offer of admission to attend [attendance at] the
42	42	institution;
43	43	(ii) by the institution;
44	44	(iii) in exchange for an act that occurs
45	45	while the athlete is engaged in an official team activity [property
46	46	owned by the institution or for providing an endorsement while
47	47	using intellectual property or other property owned by the
48	48	institution]; or
49	49	(iv) in exchange for an endorsement of
50	50	alcohol, tobacco products, e-cigarettes or any other type of
51	51	nicotine delivery device, anabolic steroids, sports betting,
52	52	casino gambling, a firearm the student athlete cannot legally
53	53	purchase, or a sexually oriented business as defined in Section
54	54	243.002, Local Government Code; or
55	55	(C) the duration of the contract extends beyond
56	56	the student athlete's participation in the intercollegiate
57	57	athletic program;
58	58	(3) is not considered an employee of the institution
59	59	based on the student athlete's participation in the intercollegiate
60	60	athletic program; [and]
61	61	(4) may earn compensation from selling the student
62	62	athlete's autograph in a manner that does not otherwise conflict
63	63	with a provision of this section; and
64	64	(5) may not use an institution's facility, uniform,
65	65	registered trademark, copyright-protected product, or official
66	66	logo, mark, or other indicia in connection with a contract for the
67	67	use of the student athlete's name, image, or likeness unless the
68	68	student athlete obtains the institution's express permission.
69	69	(g-1) The following activities do not constitute
70	70	compensation provided by an institution to which this section
71	71	applies under Subsection (g)(2)(B)(ii):
72	72	(1) an activity authorized under Subsection (m); or
73	73	(2) recognition by an institution to which this
74	74	section applies of a third-party entity that compensates a student
75	75	athlete for the use of the student athlete's name, image, or
76	76	likeness, or the entity's donors, including the institution's
77	77	provision of priority status or other items of de minimis value
78	78	equivalent to status or items the institution provides to the
79	79	institution's donors.
80	80	(g-2) An institution may not authorize a use described by
81	81	Subsection (g)(5) unless the institution requires that:
82	82	(1) the student athlete and the person contracting for
83	83	the use of the student athlete's name, image, or likeness comply
84	84	with any requirements the institution establishes, including
85	85	requirements related to licensing; and
86	86	(2) the institution is compensated for the use in an
87	87	amount consistent with market rates.
88	88	(i) An institution to which this section applies shall
89	89	require a student athlete participating in an intercollegiate
90	90	athletic program at the institution to attend a financial literacy
91	91	and life skills course during [workshop at the beginning of] the
92	92	student's first [and third] academic year [years] at the
93	93	institution. The course [workshop] must be at least five hours in
94	94	duration and include information on financial aid, debt management,
95	95	time management, budgeting, and academic resources available to the
96	96	student athlete. The institution may not during the course
97	97	[workshop] allow any provider of financial products or services to:
98	98	(1) market, advertise, or refer the provider's
99	99	services to a student athlete; or
100	100	(2) solicit a student athlete to use the provider's
101	101	services.
102	102	(l) Information written, produced, collected, assembled, or
103	103	maintained by an institution to which this section applies that
104	104	includes or reveals any term of a contract or proposed contract for
105	105	the use of the student athlete's name, image, or likeness is
106	106	confidential and excepted from required public disclosure in
107	107	accordance with Chapter 552, Government Code. An institution to
108	108	which this section applies may withhold information described by
109	109	this subsection without requesting a decision from the attorney
110	110	general under Subchapter G, Chapter 552, Government Code.
111	111	(m) An institution to which this section applies or
112	112	third-party entity acting on the institution's behalf, or employee
113	113	of the institution or third-party entity:
114	114	(1) may identify, create, facilitate, or otherwise
115	115	assist with opportunities for a currently enrolled student athlete
116	116	to earn compensation from a third party for the use of the student
117	117	athlete's name, image, or likeness; and
118	118	(2) may not, in assisting a student athlete as
119	119	described by Subdivision (1):
120	120	(A) act as an athlete agent for the student
121	121	athlete;
122	122	(B) be compensated by the student athlete or
123	123	third party for providing the assistance;
124	124	(C) attempt to influence the student athlete's
125	125	choice of professional representation in connection with an
126	126	opportunity; or
127	127	(D) attempt to diminish the student athlete's
128	128	opportunities from competing third parties.
129	129	(n) A charitable organization exempt from taxation under
130	130	Section 501(a), Internal Revenue Code of 1986, as an organization
131	131	described by Section 501(c)(3) of that code, may compensate a
132	132	student athlete for the use of the student athlete's name, image, or
133	133	likeness.
134	134	(o) An activity of a third-party entity that compensates a
135	135	student athlete for the use of the student athlete's name, image, or
136	136	likeness may not be construed as an act on behalf of an institution
137	137	to which this section applies, provided that:
138	138	(1) the entity is a separate legal entity from the
139	139	institution; and
140	140	(2) the institution does not own or control the
141	141	entity.
142	142	(p) This section may not be construed as creating a cause of
143	143	action against an institution or an institution's officers or
144	144	employees relating to a student athlete's name, image, or likeness.
145	145	SECTION 2. (a) Except as provided by Subsection (b) of this
146	146	section, the changes in law made by this Act apply only to a
147	147	contract for the use of a student athlete's name, image, or likeness
148	148	entered into on or after the effective date of this Act. A contract
149	149	for the use of a student athlete's name, image, or likeness entered
150	150	into before the effective date of this Act is governed by the law as
151	151	it existed immediately before the effective date of this Act, and
152	152	that law is continued in effect for that purpose.
153	153	(b) Section 51.9246(l), Education Code, as added by this
154	154	Act, applies only to a request for information received on or after
155	155	the effective date of this Act. A request for information received
156	156	before the effective date of this Act is governed by the law in
157	157	effect on the date the request was received, and the former law is
158	158	continued in effect for that purpose.
159	159	SECTION 3. This Act takes effect July 1, 2023, if it
160	160	receives a vote of two-thirds of all the members elected to each
161	161	house, as provided by Section 39, Article III, Texas Constitution.
162	162	If this Act does not receive the vote necessary for effect on that
163	163	date, this Act takes effect September 1, 2023.
164	164	______________________________ ______________________________
165	165	President of the Senate Speaker of the House
166	166	I certify that H.B. No. 2804 was passed by the House on April
167	167	25, 2023, by the following vote: Yeas 146, Nays 0, 1 present, not
168	168	voting.
169	169	______________________________
170	170	Chief Clerk of the House
171	171	I certify that H.B. No. 2804 was passed by the Senate on May
172	172	17, 2023, by the following vote: Yeas 23, Nays 7, 1 present, not
173	173	voting.
174	174	______________________________
175	175	Secretary of the Senate
176	176	APPROVED: _____________________
177	177	Date
178	178	_____________________
179	179	Governor