Texas lawmakers have taken a significant step toward transforming collegiate athletics in the state.
The Texas House passed House Bill 126 on Wednesday with a bipartisan vote of 125-19, allowing universities to directly pay student-athletes for their name, image, and likeness (NIL). Rep. Carl Tepper (R-Lubbock) authored the legislation, which has now moved to the Senate for consideration.
“We will be killing college football in Texas if we do not pass this bill,” Tepper warned colleagues during floor debate, HereSanAntonio reported.
The bill aims to align Texas with anticipated NCAA rule changes following a class-action lawsuit settlement currently pending approval. This settlement would create a revenue-sharing model permitting certain universities to distribute up to $20.5 million annually to athletes.
Financial implications could be substantial for Texas institutions. University of Texas student athletes have already earned more than $46 million in NIL compensation over the past 3.5 years, with $17.6 million coming in the current academic year alone.
Some lawmakers expressed concerns about potential disparities between institutions.
“You won’t see any more Cinderella stories,” cautioned Rep. Mitch Little (R-Lewisville), per Fox 4 KDFW. He noted that smaller universities may lack “the same access to capital that the large universities in Texas will [have].”
Others worry about financial management by young athletes.
Rep. Barbara Gervin Hawkins (D-San Antonio) suggested placing NIL funds in trusts “to protect our youth from falling into the trap of back taxes, bad investments, family disruptions,” Fox 4 reported.
The bill includes important protections for student athletes. It clarifies that they would not be considered employees, despite universities entering into NIL contracts with them.
A notable provision allows NCAA rules or court orders to override state laws, streamlining compliance. The bill also ensures institutions cannot prohibit athletes from earning NIL compensation outside team activities.
While the House showed strong support, the bill faces potentially tougher scrutiny in the Senate. Should it pass, Texas would join other states modernizing their approach to college athletics compensation.