H.B.ANo.A2804

1AN ACT2

relating to use of the name, image, or likeness of a student athlete

3

participating4

institution of higher education.

inanintercollegiate

athleticprogram

atan

5

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

6SECTIONA1.AASection 51.9246, Education Code, is amended by7

adding Subsections (a-1), (c-1), (g-1), (g-2), (l), (m), (n), (o),8and (p) and amending Subsections (g) and (i) to read as follows:(a-1)AAFor

9

purposesofthissection,

officialteam

10

activities of an intercollegiate athletic program at an institution

11

to which this section applies include any activity the institution

12designates as an official team activity.
(c-1)AAAn athletic association, an athletic conference, or

13
14

any

15

intercollegiate athletic program at an institution to which this

16section

17regulation, a standard, or any other requirement that prohibits the18institution

19otherwise

20

intercollegiate athletic program for performing, participating in,21

or allowing an activity required or authorized by this section.

2223
24

othergroupapplies

from

or

may

organizationnotenforce

participating

penalizes

theinawithauthority

contract

term,intercollegiate

institution

ortheoverarule,athletics

anaorinstitution ’s(g)AAA student athlete participating in an intercollegiate
athletic program at an institution to which this section applies:(1)AAshall, before entering into the contract, disclose1

H.B.ANo.A2804
1

to the institution, in the manner prescribed by the institution,2

any proposed contract the student athlete may sign for use of the3student athlete ’s name, image, or likeness;(2)AAmay not enter into a contract for the use of the4
5

student athlete ’s name, image, or likeness if:

6(A)AAany provision of the contract conflicts with7

a provision of the student athlete ’s team contract, a provision of

8

an

9

athletic department of the institution, or a provision of the honor

10

institutionaloftheinstitution,apolicyof

thecode of the institution;

11
12

contract(B)AAthe compensation for the use of the student
athlete ’s name, image, or likeness is provided:13(i)AAin exchange for athletic performance or

14

accepting15

institution;anofferofadmissiontoattend[attendanceat]

the16(ii)AAby the institution;

17(iii)AAin exchange for an act that occurs

18

while the athlete is engaged in an official team activity [property

19

owned by the institution or for providing an endorsement while

20

using

21

institution]; or

intellectual

22

propertyor(iv)AAin

other

property

ownedbytheexchangeforanendorsementofe-cigarettes

or

any

otherof23

alcohol,

tobaccoproducts,

24

nicotinedeliverydevice,anabolic25

casinofirearm

the26purchase, or a sexually oriented business as defined in Section

27243.002, Local Government Code; orgambling,a2

steroids,student

athletesportscannottype

betting,
legallyH.B.ANo.A2804
1(C)AAthe duration of the contract extends beyond
athlete ’s

2

thestudent

3

athletic program;participation

intheintercollegiate

4(3)AAis not considered an employee of the institution

5

based on the student athlete ’s participation in the intercollegiate

6

athletic program; [and]7(4)AAmay

earn

compensation

fromselling

thestudent

8

athlete ’s autograph in a manner that does not otherwise conflict

9with a provision of this section; and(5)AAmay not use an institution ’s facility, uniform,

10
11

registered12logo, mark, or other indicia in connection with a contract for the13

use of the student athlete ’s name, image, or likeness unless the14

student athlete obtains the institution ’s express permission.

15

trademark,(g-1)AAThecopyright-protectedfollowing

activities

16compensation

17

applies under Subsection (g)(2)(B)(ii):providedbyan

institution

product,

dotoornotofficial

constitutewhich

thissection

18(1)AAan activity authorized under Subsection (m); or

19(2)AArecognitionbyaninstitution

to

which

this

20

section applies of a third-party entity that compensates a student

21

athlete22

likeness,

23

provision of priority status or other items of de minimis value

24

equivalent25

institution ’s donors.

26
27

for

theor

to

the

use

of

theentity ’sstatusor

student

donors,

items

the

athlete ’s

includingname,theinstitution

image,

or

institution ’s

providestothe(g-2)AAAn institution may not authorize a use described bySubsection (g)(5) unless the institution requires that:3

H.B.ANo.A28041(1)AAthe student athlete and the person contracting for2

the use of the student athlete ’s name, image, or likeness comply

3

with

4

requirements related to licensing; andany

requirements

institution

establishes,including(2)AAthe institution is compensated for the use in an

5
6

theamount consistent with market rates.

7(i)AAAninstitution

towhichthis

sectionappliesshall

8

require9

athletic program at the institution to attend a financial literacy

10

and life skills course during [workshop at the beginning of] the11student ’s

12

institution.AAThe course [workshop] must be at least five hours in13

duration and include information on financial aid, debt management,

14

time management, budgeting, and academic resources available to the15

student

16[workshop] allow any provider of financial products or services to:

astudent

first

participating

third]

inacademic

institution(1)AAmarket,

advertise,mayanyearnotorintercollegiate[years]during

refer

the

theat

thecourse

provider ’sservices to a student athlete; or(2)AAsolicit a student athlete to use the provider ’s

1920[andathlete.AAThe

1718

athleteservices.

21(l)AAInformation written, produced, collected, assembled, or

22

maintained by an institution to which this section applies that23

includes or reveals any term of a contract or proposed contract for

24

the25

confidential

26

accordance with Chapter 552, Government Code.

27

which this section applies may withhold information described byuseof

theandstudent

athlete ’s

excepted

from

4

name,

required

image,
publicorlikeness

isdisclosurein

An institution toH.B.ANo.A2804
1

this subsection without requesting a decision from the attorney2

general under Subchapter G, Chapter 552, Government Code.
institution(m)AAAn3

towhichthissection

appliesor4third-party entity acting on the institution ’s behalf, or employee

5of the institution or third-party entity:(1)AAmay

6

identify,

create,facilitate,orotherwise

7

assist with opportunities for a currently enrolled student athlete

8

to earn compensation from a third party for the use of the student

9

athlete ’s name, image, or likeness; and(2)AAmay

10
11

in

assisting(A)AAactasan

athletestudent

athleteasagentforthestudent

athlete;14(B)AAbe

15

third party for providing the assistance;compensatedby

thestudent

athleteor(C)AAattempt to influence the student athlete ’s

16
17

choice18

opportunity; orof

professional

representation(D)AAattempt

19
20

a

described by Subdivision (1):

12
13

not,

toin

diminishconnection

thestudentwithanathlete ’s

opportunities from competing third parties.

21(n)AAA charitable organization exempt from taxation under22

Section 501(a), Internal Revenue Code of 1986, as an organization

23

described

24

student athlete for the use of the student athlete ’s name, image, or25

likeness.

bySection

501(c)(3)ofthatcode,

maycompensatea26(o)AAAn activity of a third-party entity that compensates a27

student athlete for the use of the student athlete ’s name, image, or5

H.B.ANo.A2804
1likeness may not be construed as an act on behalf of an institution2

to which this section applies, provided that:(1)AAthe entity is a separate legal entity from the3
4

institution; and(2)AAthe

56

institution

does

notownorcontrol

theentity.
(p)AAThis section may not be construed as creating a cause of7aninstitution

employees relating to a student athlete ’s name, image, or likeness.

thechanges

anor

9

SECTIONA2.AA(a)orofficers

action10

againstinstitution ’s

8

Except as provided by Subsection (b) of this11

section,inlaw

madebythisAct

apply

only

12

contract for the use of a student athlete ’s name, image, or likeness

13

entered into on or after the effective date of this Act.

14

for the use of a student athlete ’s name, image, or likeness entered15

into before the effective date of this Act is governed by the law as

16

it existed immediately before the effective date of this Act, and17that law is continued in effect for that purpose.

Atoa

contract

18(b)AASection 51.9246(l), Education Code, as added by this19

Act, applies only to a request for information received on or after

20

the effective date of this Act.

21

before the effective date of this Act is governed by the law in

22

effect on the date the request was received, and the former law is23

continued in effect for that purpose.

24

SECTIONA3.AAThis

ActA request for information received

takeseffectJuly

1,2023,

ifit25receives a vote of two-thirds of all the members elected to each26

house, as provided by Section 39, Article III, Texas Constitution.

27

If this Act does not receive the vote necessary for effect on that6

H.B.ANo.A2804
1

date, this Act takes effect September 1, 2023.

7

H.B.ANo.A2804____________________________________________________________

AAAAPresident of the Senate

Speaker of the HouseAAAAAA

I certify that H.B. No. 2804 was passed by the House on April
25, 2023, by the following vote:AAYeas 146, Nays 0, 1 present, notvoting.

______________________________
Chief Clerk of the HouseAAA

I certify that H.B. No. 2804 was passed by the Senate on May
17, 2023, by the following vote:AAYeas 23, Nays 7, 1 present, notvoting.

______________________________
Secretary of the SenateAAAA

APPROVED:AA_____________________AAAAAAAAAAAAAAAAAAAADateAAAAAAAAAAAAAAAAAAAAA_____________________AAAAAAAAAAAAAAAAAAGovernorAAAAAAA

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