Texas House Bill 126 updates NIL law for competitive athlete recruitment

The Senate Committee on Education K-16 convened on May 20, 2025, to discuss House Bill 126, which aims to update Texas's name, image, and likeness (NIL) law for university athletic programs. The bill is a response to anticipated changes in NCAA regulations and seeks to ensure Texas institutions remain competitive in recruiting student athletes.

The meeting began with an overview of the bill's three primary components. First, it would permit universities to enter into direct NIL agreements with student athletes. Second, it would eliminate current restrictions that prevent NIL agreements from being offered before a student athlete enrolls in an institution, although no payments would be made until enrollment. Lastly, the bill would allow universities and student athletes to comply with future NCAA or athletic conference rules, even if those rules conflict with Texas's NIL law.

Senator Creighton emphasized the need for these updates, noting that Texas has had to adjust its NIL legislation for three consecutive sessions to keep pace with changes in the NCAA landscape. He described the current situation as a "Wild West" scenario, where clarity and consistency are needed to maintain competitiveness with other states.

The committee heard testimony from Eric Bentley, Vice Chancellor and General Counsel for Texas Tech University System, and Brooks Moore, Deputy General Counsel at Texas A&M University System. Both witnesses expressed support for the bill, highlighting the urgency of aligning Texas's NIL law with the forthcoming NCAA settlement, which would allow for direct compensation to athletes. Bentley pointed out that without this legislation, Texas institutions risk falling behind states like Florida and Alabama, which are poised to offer more favorable NIL agreements.

Senator West raised questions regarding the implications of the bill, particularly concerning the recruitment of younger athletes and the potential for contracts to be signed before enrollment. Both Bentley and Moore clarified that while recruitment can occur at any age, actual payments under NIL agreements would only commence once the athlete is enrolled.

The discussion also touched on the broader implications of NIL legislation, including the potential for future federal regulations and the ongoing evolution of college athletics. Senators expressed concerns about the need for uniformity across states to prevent Texas institutions from losing out on top talent.

The public testimony segment concluded without opposition to the bill, and the committee left House Bill 126 pending for further consideration. The urgency of passing the bill was underscored by the need for immediate action following the anticipated NCAA settlement, which could significantly alter the landscape of college athletics in Texas.