Texas 2023 - 88th Regular

Texas Senate Bill SB1784 Compare Versions

Version 1 (Old)

Version 2 (New)

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1	1	By: Kolkhorst S.B. No. 1784
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to use of the name, image, or likeness of a student athlete
7	7	participating in an intercollegiate athletic program at an
8	8	institution of higher education.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 51.9246, Education Code, is amended by
11	11	adding Subsections (a-1), (g-1), (l), (m), and (n) and amending
12	12	Subsections (g) and (i) to read as follows:
13	13	(a-1) For purposes of this section, official team
14	14	activities of an intercollegiate athletic program at an institution
15	15	to which this section applies include any activity the institution
16	16	designates as an official team activity.
17	17	(g) A student athlete participating in an intercollegiate
18	18	athletic program at an institution to which this section applies:
19	19	(1) shall, before entering into the contract, disclose
20	20	to the institution, in the manner prescribed by the institution,
21	21	any proposed contract the student athlete may sign for use of the
22	22	student athlete's name, image, or likeness;
23	23	(2) may not enter into a contract for the use of the
24	24	student athlete's name, image, or likeness if:
25	25	(A) any provision of the contract conflicts with
26	26	a provision of the student athlete's team contract, a provision of
27	27	an institutional contract of the institution, a policy of the
28	28	athletic department of the institution, or a provision of the honor
29	29	code of the institution;
30	30	(B) the compensation for the use of the student
31	31	athlete's name, image, or likeness is provided:
32	32	(i) in exchange for athletic performance or
33	33	attendance at the institution;
34	34	(ii) by the institution;
35	35	(iii) in exchange for an act that occurs
36	36	while the athlete is engaged in an official team activity [property
37	37	owned by the institution or for providing an endorsement while
38	38	using intellectual property or other property owned by the
39	39	institution]; or
40	40	(iv) in exchange for an endorsement of
41	41	alcohol, tobacco products, e-cigarettes or any other type of
42	42	nicotine delivery device, anabolic steroids, sports betting,
43	43	casino gambling, a firearm the student athlete cannot legally
44	44	purchase, or a sexually oriented business as defined in Section
45	45	243.002, Local Government Code; or
46	46	(C) the duration of the contract extends beyond
47	47	the student athlete's participation in the intercollegiate
48	48	athletic program;
49	49	(3) is not considered an employee of the
50	50	institution based on the student athlete's participation in the
51	51	intercollegiate athletic program; [and]
52	52	(4) may earn compensation from selling the
53	53	student athlete's autograph in a manner that does not otherwise
54	54	conflict with a provision of this section; and
55	55	(5) may not use an institution's facility,
56	56	uniform, registered trademark, copyright-protected product, or
57	57	official logo, mark, or other indicia in connection with a contract
58	58	for the use of the student athlete's name, image, or likeness unless
59	59	the student athlete obtains the institution's express permission.
60	60	(g-1) An institution may not authorize a use described by
61	61	Subsection (g)(5) unless the institution requires that:
62	62	(1) the student athlete and the person with which the
63	63	student athlete has contracted for the use of the student athlete's
64	64	name, image, or likeness comply with any requirements the
65	65	institution establishes, including requirements related to
66	66	licensing; and
67	67	(2) the institution is compensated for the use in a
68	68	manner consistent with market rates.
69	69	(i) An institution to which this section applies shall offer
70	70	a financial literacy and life skills program that [require] a
71	71	student athlete participating in an intercollegiate athletic
72	72	program at the institution may [to] attend during [a financial
73	73	literacy and life skills workshop at the beginning of] the
74	74	student's first year [and third academic years] at the institution.
75	75	The program [workshop] must be at least five hours in duration and
76	76	include information on financial aid, debt management, time
77	77	management, budgeting, and academic resources available to the
78	78	student athlete. The institution may not during the program
79	79	[workshop] allow any provider of financial products or services to:
80	80	(1) market, advertise, or refer the provider's
81	81	services to a student athlete; or
82	82	(2) solicit a student athlete to use the provider's
83	83	services.
84	84	(l) Information written, produced, collected, assembled, or
85	85	maintained by an institution to which this section applies, that
86	86	reveals the terms of a student athlete's contract or proposed
87	87	contract for the use of the student athlete's name, image, or
88	88	likeness, is confidential and excepted from required public
89	89	disclosure in accordance with Chapter 552, Government Code. An
90	90	institution to which this section applies may withhold information
91	91	described by this subsection without requesting a decision from the
92	92	attorney general under Subchapter G, Chapter 552, Government Code.
93	93	(m) An institution to which this section applies, or any
94	94	employee of the institution, may identify or otherwise assist with
95	95	opportunities for a currently-enrolled student athlete to earn
96	96	compensation from a third party for the use of the student
97	97	athlete's name, image, or likeness provided that an institution's
98	98	employee shall not:
99	99	(1) serve as an athlete agent for the student athlete;
100	100	(2) receive compensation from the student athlete or
101	101	third party for facilitating or enabling such opportunities;
102	102	(3) attempt to influence a student athlete's choice of
103	103	professional representation related to such opportunities; or
104	104	(4) attempt to reduce a student athlete's
105	105	opportunities from competing third parties.
106	106	(n) This section may not be construed as creating a cause of
107	107	action against an institution or an institution's officers or
108	108	employees relating to the use of a student athlete's name, image, or
109	109	likeness.
110	110	SECTION 2. Except as provided by Section 3, the changes in
111	111	law made by this Act apply only to a contract for the use of a
112	112	student athlete's name, image, or likeness entered into on or after
113	113	the effective date of this Act. A contract for the use of a student
114	114	athlete's name, image, or likeness entered into before the
115	115	effective date of this Act is governed by the law as it existed
116	116	immediately before the effective date of this Act, and that law is
117	117	continued in effect for that purpose.
118	118	SECTION 3. The change in law made by Section 51.9246(l),
119	119	Education Code, as added by this Act, applies to a request for
120	120	information that is received by an institution to which Section
121	121	51.9246 applies on or after the effective date of this Act. A
122	122	request for information that was received before the effective date
123	123	of this Act is governed by the law in effect on the date the request
124	124	was received, and the former law is continued in effect for that
125	125	purpose.
126	126	SECTION 4. This Act takes effect July 1, 2023, if it
127	127	receives a vote of two-thirds of all the members elected to each
128	128	house, as provided by Section 39, Article III, Texas Constitution.
129	129	If this Act does not receive the vote necessary to take effect July
130	130	1, 2023, this Act takes effect September 1, 2023.