H.B. No. 126 amends the Education Code to enhance the rights of student athletes at certain institutions of higher education regarding their name, image, and likeness (NIL). The bill prohibits institutions from adopting policies that prevent student athletes from earning compensation for their NIL when not engaged in official team activities and allows them to obtain professional representation for related contracts. New subsections clarify that these provisions apply only in cases of conflict with existing contracts or regulations from governing athletic organizations. Additionally, the bill establishes that individuals or entities cannot enter into NIL arrangements with prospective student athletes under 17 years of age unless they are enrolled in higher education.

The bill also repeals certain existing provisions and outlines specific conditions under which student athletes may enter into contracts for the use of their NIL. It emphasizes that student athletes are not considered employees of their institutions based solely on their participation in intercollegiate athletics and sets restrictions on the use of institutional branding in NIL contracts. The changes will apply only to compensation agreements made after the bill's effective date, ensuring that prior agreements remain governed by the previous law. The act will take effect immediately upon receiving a two-thirds vote from both legislative houses or on September 1, 2025, if that threshold is not met.

Statutes affected:
Introduced: Education Code 51.9246 (Education Code 51)
House Committee Report: Education Code 51.9246 (Education Code 51)
Engrossed: Education Code 51.9246 (Education Code 51)
Senate Committee Report: Education Code 51.9246 (Education Code 51)
Enrolled: Education Code 51.9246 (Education Code 51)