By: Creighton, Miles, West  S.B. No. 1385
         (In the Senate - Filed March 10, 2021; March 18, 2021, read
  first time and referred to Committee on Higher Education;
  April 19, 2021, reported adversely, with favorable Committee
  Substitute by the following vote:  Yeas 9, Nays 0; April 19, 2021,
  sent to printer.)
Click here to see the committee vote
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 1385 By:  Creighton
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  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.  The legislature finds and declares the
  following:
               (1)  intercollegiate athletics are an essential part of
  the fabric of this state;
               (2)  the competitive integrity of intercollegiate
  athletics is of vital importance;
               (3)  the United States Congress has failed to act to
  provide uniform guidance to the states on the matter of
  intercollegiate athletes receiving compensation in exchange for
  the use of the athlete's name, image, or likeness; and
               (4)  the United States Congress must act on this matter
  to ensure the competitive integrity of intercollegiate athletics.
         SECTION 2.  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.
               (3)  "Honor code" means a set of rules or principles
  governing an academic community to which a student agrees to abide
  when attending an institution to which this section applies.
               (4)  "Institutional contract" means a contract between
  an institution to which this section applies or its designated
  representative and an external party that includes a sponsorship
  agreement governing the use of the institution's trademarks in
  connection with athletics.
               (5)  "Team contract" means a contract between a student
  athlete and an institution to which this section applies and
  includes any rules or expectations of the institution's athletic
  department or head coach that require a student athlete's
  compliance as a condition under the contract of participation as a
  member of the intercollegiate athletic program.
         (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, as that term is defined
  by the institution; 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 or solicit 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 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.
         (g)  A student athlete participating in an intercollegiate
  athletic program at an institution to which this section applies:
               (1)  shall, before entering into the contract, disclose
  to the institution, in the manner prescribed by the institution,
  any proposed contract the student athlete may sign 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, a provision of
  an institutional contract of the institution, or a provision of the
  honor code of the institution;
                     (B)  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;
                           (ii)  by the institution;
                           (iii)  in exchange for property owned by the
  institution or for providing an endorsement while using
  intellectual property or other property owned by the institution;
  or
                           (iv)  in exchange for an endorsement of
  alcohol, tobacco products, e-cigarettes or any other type of
  nicotine delivery device, anabolic steroids, casino gambling, a
  firearm the student athlete 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 athlete's participation in the intercollegiate
  athletic program;
               (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;
               (4)  is not considered an employee of the institution
  based on the student athlete's participation in the intercollegiate
  athletic program; and
               (5)  may earn compensation from selling the student
  athlete's autograph in a manner that does not otherwise conflict
  with a provision of this section.
         (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, an institutional
  contract of the institution, or the honor code of the institution
  shall promptly disclose the conflict to the student athlete or the
  student athlete's representative, if applicable.  The student
  athlete or the student athlete's representative is responsible for
  resolving the conflict not later than the 10th day after the date of
  the disclosure.
         (i)  An institution to which this section applies shall
  require a student athlete participating in an intercollegiate
  athletic program at the institution to attend a financial 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 3.  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 4.  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 5.  This Act takes effect September 1, 2021.
 
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