Bill passes to legalize school payments to Texas student athletes

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a day ago

The Brief
A bill allowing Texas universities to directly pay college athletes has passed in the Texas Legislature and is headed to the governor's desk.
This bill is in response to an NCAA settlement involving payments to college athletes nationwide.
If signed, the law takes effect on Sept. 1. The NCAA settlement approval is also expected this fall.
DALLAS - A bill that opens the door for universities in Texas to pay college athletes is headed to the governor's desk.
For decades, the NCAA has forbidden schools from paying athletes directly. But that firewall appears to be crumbling.
What we know
Since 2021, college athletes have been able to receive payments for their name, image, and likeness from companies and boosters.
House Bill 126 opens the door for Texas universities to directly pay their athletes as well.
It passed in the Texas House and Senate this week.
Dig deeper
In a few months, universities are expecting a judge to approve a lawsuit settlement against the NCAA involving payments to college athletes nationwide.
The nearly $3 billion settlement would send millions to each Division I school for direct payment to athletes.
It's retroactive to 2016, meaning athletes who competed before NIL became legal are eligible for back pay.
HB 126 changes Texas law, which currently does not allow colleges to pay athletes directly.
So even if the settlement was approved tomorrow, Texas athletes still would not be eligible to receive money without HB 126 changing the law.
What they're saying
University officials warned the Senate in a call this week that Texas will be at a disadvantage if the law is not changed quickly.
"Because that final order on NIL settlements that are already in place will not be issued by a judge until the fall, we are considering this legislation to make sure after session that we're in compliance with that settlement," said State Sen. Brandon Creighton.
College recruiting happens well before students graduate from high school. So, the new law does have an amendment saying students 17 and older can only start receiving NIL funds once they are actively participating in college.
"We are creating some common sense by amending it, making sure that no athletes under 17 years of age will be eligible for an NIL agreement. And from 17 and older, no athletes in high school can receive any money under an NIL agreement until they're enrolled in college and participating in the program that they agreed to participate in," Creighton said.
What's next
If Gov. Greg Abbott signs the bill, it will take effect on Sept. 1.
It's not clear exactly when the judge in the NCAA case will give final approval to the settlement, but it is expected to happen sometime this fall.
The Source
FOX 4's Steven Dial gathered details for this story from the debates and language on HB 126, as well as past news coverage.