|
House Bill 2804 |
House Author: Kuempel et al. |
|
Effective: 7-1-23 |
Senate Sponsor: Creighton et al. |
House Bill 2804 amends the Education Code to revise the law governing the use of the name, image, or likeness (NIL) of a student athlete participating in an intercollegiate athletic program at an institution of higher education. Among other provisions, the bill does the following:
· prohibits an athletic association, an athletic conference, or any other group or organization with authority over an institution's intercollegiate athletic program from enforcing a contract term, a rule, a regulation, a standard, or any other requirement that penalizes the institution or athletic program for performing, participating in, or allowing NIL activities required or authorized by state law;
· allows a student athlete to use an institution's facility, uniform, registered trademark, copyright protected product, or indicia in connection with a NIL contract if the athlete obtains express permission from the institution, which is contingent on the institution being compensated consistent with market rates and requiring the athlete and contracting entity to comply with the institution's requirements;
· prohibits a student athlete from entering into a NIL contract if compensation is provided in exchange for an act that occurs while the athlete is engaged in an official team activity;
· establishes that an institution's recognition of a third party entity that compensates a student athlete for the use of their NIL, or the entity's donors, is not considered compensation;
· revises the financial literacy and life skills training requirements for student athletes;
· establishes the confidentiality of information relating to a NIL contract;
· authorizes an institution, a third party entity acting on the institution's behalf, or an employee of the institution or third party to assist with opportunities for a student athlete to earn compensation for the use of the student athlete's NIL, subject to certain limitations;
· authorizes a 501(c)(3) tax exempt organization to compensate a student athlete for the use of their NIL; and
· establishes that an activity of a third party entity that compensates a student athlete for the use of their NIL may not be construed as an act on behalf of an institution if the entity is a separate legal entity from the institution and the institution does not own or control the entity.