SB655 - Relating to prohibited student athlete name, image, and likeness agreements; providing injunctive relief and a civil penalty.

  89R5375 BEE-D     By: West S.B. No. 655       A BILL TO BE ENTITLED   AN ACT   relating to prohibited student athlete name, image, and likeness   agreements; providing injunctive relief and a civil penalty.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subtitle B, Title 13, Occupations Code, is   amended by adding Chapter 2053 to read as follows:   CHAPTER 2053.   NAME, IMAGE, AND LIKENESS AGREEMENTS           Sec.   2053.001.     DEFINITION. In this chapter, "student   athlete" means an individual who as a student participates in:                 (1)  a University Interscholastic League activity; or                 (2)     an intercollegiate athletic program at an   institution of higher education.           Sec.   2053.002.     PROHIBITED NAME, IMAGE, AND LIKENESS   AGREEMENTS.   A person may not enter into an agreement with a student   athlete under which the person:                 (1)     pays the student athlete an amount as   consideration;                 (2)     receives the exclusive right to negotiate the use   or sale of the student athlete's name, image, and likeness for the   term of the agreement; and                 (3)     is entitled to receive a percentage of earnings   from the use or sale of the student athlete's name, image, and   likeness until the earlier of:                       (A)     the date the person has received a   predetermined amount of the student athlete's earnings; or                       (B)  the date the agreement expires.           Sec.   2053.003.     PROHIBITED AGREEMENTS VOID AND   UNENFORCEABLE. An agreement entered into in violation of Section   2053.002 or any language in an agreement that circumvents the   prohibition imposed under that section or otherwise achieves the   same or a substantially similar effect as a prohibited agreement is   void and unenforceable.           Sec.   2053.004.     PROHIBITED WAIVER. An agreement may not   waive the requirements of this chapter. A purported waiver of this   chapter is a violation of this section and is void.           Sec.   2053.005.     CIVIL PENALTY; INJUNCTIVE RELIEF.   (a)   A   person who violates this chapter is liable for a civil penalty not   to exceed $100,000 for each violation.           (b)     The attorney general may bring an action in the name of   this state to:                 (1)  recover a civil penalty under Subsection (a);                 (2)     restrain or enjoin the person from violating this   chapter; or                 (3)     recover the civil penalty under Subsection (a) and   seek injunctive relief.           (c)     The attorney general may recover reasonable attorney's   fees and court costs in bringing an action under this section.          SECTION 2.  Chapter 2053, Occupations Code, as added by this   Act, applies only to an agreement entered into on or after the   effective date of this Act.          SECTION 3.  This Act takes effect September 1, 2025.