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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