Bill Text: TX SB1385 | 2021-2022 | 87th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the compensation and professional representation of student athletes participating in intercollegiate athletic programs at certain institutions of higher education.
Spectrum: Bipartisan Bill
Status: (Passed) 2021-06-14 - Effective on . . . . . . . . . . . . . . . July 1, 2021 [SB1385 Detail]
Download: Texas-2021-SB1385-Introduced.html
Bill Title: Relating to the compensation and professional representation of student athletes participating in intercollegiate athletic programs at certain institutions of higher education.
Spectrum: Bipartisan Bill
Status: (Passed) 2021-06-14 - Effective on . . . . . . . . . . . . . . . July 1, 2021 [SB1385 Detail]
Download: Texas-2021-SB1385-Introduced.html
87R9361 ADM-D | ||
By: Creighton | S.B. No. 1385 |
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relating to the compensation and professional representation of | ||
student athletes participating in intercollegiate athletic | ||
programs at certain 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, for | ||
contracts or other legal matters relating to the use of the student | ||
athlete's name, image, or likeness; 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, for contracts or | ||
other legal matters relating to use of the student athlete's name, | ||
image, or likeness. | ||
(f) An institution to which this section applies: | ||
(1) may not prescribe a team contract for an | ||
intercollegiate athletic program that prohibits or otherwise | ||
prevents 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; and | ||
(2) may adopt a policy requiring a team contract for an | ||
intercollegiate athletic program to include a provision that | ||
requires a student athlete to deposit all money paid as | ||
compensation for the use of the student athlete's name, image, or | ||
likeness into a trust fund to be held for the student athlete until | ||
the student athlete is no longer eligible to participate in the | ||
program. | ||
(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 for the use of the | ||
student athlete's name, image, or likeness if: | ||
(A) any provision of the contract conflicts with | ||
a provision of the student athlete's team contract; | ||
(B) the compensation for the use of the student | ||
athlete's name, image, or likeness exceeds the fair market value of | ||
the use of the student athlete's name, image, or likeness; | ||
(C) the compensation for the use of the student | ||
athlete's name, image, or likeness is provided: | ||
(i) in exchange for athletic performance or | ||
attendance at the institution; or | ||
(ii) by the institution or a person | ||
affiliated with the institution; or | ||
(D) the duration of the contract extends beyond | ||
the student athlete's participation in the intercollegiate | ||
athletic program; and | ||
(3) may not enter into a contract for the student | ||
athlete's representation by an athlete agent relating to use of the | ||
student athlete's name, image, or likeness 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, for | ||
contracts or other legal matters relating to use of the student | ||
athlete's name, image, or likeness; | ||
(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. | ||
(j) An institution to which this section applies shall | ||
require a student athlete participating in an intercollegiate | ||
athletic program at the institution to attend a literacy and life | ||
skills workshop at the beginning of the student's first and third | ||
academic years at the institution. The workshop must be at least | ||
five hours in duration and include information on financial aid, | ||
debt management, time management, budgeting, and academic | ||
resources available to the student athlete. The institution may | ||
not during the workshop allow any provider of financial products or | ||
services to: | ||
(1) market, advertise, or refer the provider's | ||
services to a student athlete; or | ||
(2) solicit a student athlete to use the provider's | ||
services. | ||
SECTION 2. Section 2051.351, Occupations Code, is amended | ||
by adding Subsection (b-1) to read as follows: | ||
(b-1) This chapter, including this section, does not | ||
prohibit an athlete agent from representing a student athlete in | ||
the use of the student athlete's name, image, or likeness in | ||
accordance with Section 51.9246, Education Code. | ||
SECTION 3. 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 4. This Act takes effect January 1, 2022. |