Bill Text: TX HB240 | 2021 | 87th Legislature 2nd Special Session | Introduced
Bill Title: Relating to the compensation and professional representation of students participating in University Interscholastic League activities.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2021-08-27 - Filed [HB240 Detail]
Download: Texas-2021-HB240-Introduced.html
87S20663 MM-D | ||
By: Cook | H.B. No. 240 |
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relating to the compensation and professional representation of | ||
students participating in University Interscholastic League | ||
activities. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subchapter D, Chapter 33, Education Code, is | ||
amended by adding Section 33.099 to read as follows: | ||
Sec. 33.099. COMPENSATION AND PROFESSIONAL REPRESENTATION | ||
OF STUDENTS PARTICIPATING IN UNIVERSITY INTERSCHOLASTIC LEAGUE | ||
ACTIVITIES. (a) In this section: | ||
(1) "Athlete agent" has the meaning assigned by | ||
Section 2051.001, Occupations Code. | ||
(2) "League" means the University Interscholastic | ||
League. | ||
(3) "Participation agreement" means an agreement | ||
between a student and a school to which this section applies | ||
regarding the student's participation in a league activity and | ||
includes any rules or expectations of the school's league activity | ||
department, head coach, or sponsor that require a student's | ||
compliance as a condition of participation in the league activity. | ||
(4) "School sponsorship contract" means a contract | ||
between a school to which this section applies or its designated | ||
representative and an external party that includes a sponsorship | ||
agreement governing the use of the school's trademarks in | ||
connection with a league activity. | ||
(b) This section applies only to a public or private primary | ||
or secondary school that participates in league activities. | ||
(c) The league or a school to which this section applies may | ||
not adopt or enforce a policy, requirement, standard, or limitation | ||
that prohibits or otherwise prevents a student participating in a | ||
league activity from: | ||
(1) earning compensation for the use of the student's | ||
name, image, or likeness when the student is not engaged in official | ||
league activities, as that term is defined by the league; or | ||
(2) obtaining professional representation, including | ||
representation by an attorney licensed to practice law in this | ||
state, for contracts or other legal matters relating to the use of | ||
the student's name, image, or likeness. | ||
(d) A scholarship, grant, or similar financial assistance | ||
awarded to a student by a private school to which this section | ||
applies that covers the student's cost of attendance at the school | ||
is not compensation for purposes of this section. | ||
(e) A student participating in a league activity at a | ||
private school to which this section applies may not be | ||
disqualified from eligibility for a scholarship, grant, or similar | ||
financial assistance awarded by the school because the student: | ||
(1) earns compensation from the use of the student's | ||
name, image, or likeness when the student is not engaged in official | ||
league activities; or | ||
(2) obtains professional representation, including | ||
representation by an attorney licensed to practice law in this | ||
state, for contracts or other legal matters relating to use of the | ||
student's name, image, or likeness. | ||
(f) A school to which this section applies may not: | ||
(1) prescribe a participation agreement for a league | ||
activity that prohibits or otherwise prevents a student from using | ||
the student's name, image, or likeness for a commercial purpose | ||
when the student is not engaged in official league activities; or | ||
(2) provide or solicit a prospective student of a | ||
league activity at the school with compensation in relation to the | ||
prospective student's name, image, or likeness. | ||
(g) A student who is 18 years of age or older, or the parent | ||
of or person standing in parental relation to a student who is not | ||
18 years of age or older, and who participates in a league activity | ||
at a school to which this section applies: | ||
(1) shall, before entering into the contract, disclose | ||
to the school, in the manner prescribed by the school, any proposed | ||
contract for use of the student's name, image, or likeness; and | ||
(2) may not enter into a contract for the use of the | ||
student's name, image, or likeness if: | ||
(A) any provision of the contract conflicts with | ||
a provision of the student's participation agreement, a provision | ||
of a school sponsorship contract of the school, a policy of the | ||
league activity department at the school, or a provision of the | ||
student code of conduct of the school; | ||
(B) the compensation for the use of the student's | ||
name, image, or likeness is provided: | ||
(i) in exchange for league activity | ||
performance or attendance at the school; | ||
(ii) by the school; | ||
(iii) in exchange for property owned by the | ||
school or for providing an endorsement while using intellectual | ||
property or other property owned by the school; or | ||
(iv) in exchange for an endorsement of | ||
alcohol, tobacco products, e-cigarettes or any other type of | ||
nicotine delivery device, anabolic steroids, sports betting, | ||
casino gambling, a firearm the student cannot legally purchase, or | ||
a sexually oriented business as defined in Section 243.002, Local | ||
Government Code; or | ||
(C) the duration of the contract extends beyond | ||
the student's participation in the league activity. | ||
(h) A student participating in a league activity at a school | ||
to which this section applies: | ||
(1) is not considered an employee of the school based | ||
on the student's participation in the league activity; and | ||
(2) may earn compensation from selling the student's | ||
autograph in a manner that does not otherwise conflict with a | ||
provision of this section. | ||
(i) A school to which this section applies that identifies a | ||
provision in a contract disclosed to the school by a student under | ||
Subsection (g)(1) that conflicts with a provision in the student's | ||
participation agreement, a provision of a school sponsorship | ||
contract of the school, a policy of the league activity department | ||
of the school, or a provision of the student code of conduct of the | ||
school shall promptly disclose the conflict to the student or the | ||
student's parent or person standing in parental relation to the | ||
student, as applicable. The student or the student's parent or | ||
person standing in parental relation to the student, as applicable, | ||
is responsible for resolving the conflict not later than the 10th | ||
day after the date of the disclosure. | ||
(j) A student participating in a league activity at a school | ||
to which this section applies may not access any money earned as | ||
compensation for the use of the student's name, image, or likeness | ||
until the date on which the student: | ||
(1) becomes 18 years of age or graduates from high | ||
school, whichever occurs later; or | ||
(2) is emancipated through marriage, through removal | ||
of the disabilities of minority by court order, or by other | ||
operation of law. | ||
(k) A student's parent or person standing in parental | ||
relation to a student owes a fiduciary duty to the student to manage | ||
any compensation the student receives for the use of the student's | ||
name, image, or likeness. | ||
(l) An individual, corporate entity, or other organization | ||
may not: | ||
(1) enter into any arrangement with a prospective | ||
student or the student's parent or person standing in parental | ||
relation to the student, as applicable, relating to the prospective | ||
student's name, image, or likeness prior to their enrollment at a | ||
school to which this section applies; or | ||
(2) use inducements of future name, image, and | ||
likeness compensation arrangement to recruit a prospective student | ||
to any school to which this section applies. | ||
(m) This section may not be construed as permitting an | ||
athlete agent to take any action prohibited under Section 2051.351, | ||
Occupations Code. | ||
SECTION 2. Section 51.9246(j), Education Code, as added by | ||
S.B. 1385, Acts of the 87th Legislature, Regular Session, 2021, is | ||
amended to read as follows: | ||
(j) No individual, corporate entity, or other organization | ||
may: | ||
(1) prior to a prospective student athlete's | ||
enrollment in an institution of higher education, enter into any | ||
arrangement with the [ |
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the prospective student athlete's name, image, or likeness while | ||
enrolled at [ |
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education; or | ||
(2) use inducements of future name, image, and | ||
likeness compensation arrangement to recruit a prospective student | ||
athlete to any institution of higher education. | ||
SECTION 3. Section 33.099(g), 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 4. This Act takes effect immediately if it receives | ||
a vote of two-thirds of all the members elected to each house, as | ||
provided by Section 39, Article III, Texas Constitution. If this | ||
Act does not receive the vote necessary for immediate effect, this | ||
Act takes effect on the 91st day after the last day of the | ||
legislative session. |