Bill > HB126

This bill modifies Texas state law to expand rights for student athletes at higher education institutions regarding their name, image, and likeness (NIL) compensation. The bill allows student athletes to earn money from their NIL when not engaged in official team activities, obtain professional legal representation for NIL contracts, and sell their autographs, while establishing several important restrictions. Students cannot enter contracts that conflict with team or institutional agreements, cannot receive compensation directly tied to athletic performance, and are prohibited from endorsing certain products like alcohol, tobacco, or gambling-related businesses. The bill also introduces a protection for very young athletes by preventing individuals or organizations from entering NIL arrangements with prospective athletes under 17 years old. Additionally, the bill clarifies that student athletes are not considered employees of their institutions and must disclose proposed NIL contracts to their schools. The legislation applies only to NIL compensation paid on or after its effective date, which will be immediately if it receives a two-thirds vote in the Texas legislature, or September 1, 2025, if not. The bill aims to provide student athletes more economic opportunities while maintaining guardrails to prevent potential exploitation.

Education

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB126